Correlation Between Uber Technologies and MAHLE Metal
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and MAHLE Metal at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Uber Technologies and MAHLE Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and MAHLE Metal Leve, you can compare the effects of market volatilities on Uber Technologies and MAHLE Metal and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Uber Technologies with a short position of MAHLE Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and MAHLE Metal.
Diversification Opportunities for Uber Technologies and MAHLE Metal
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Uber and MAHLE is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and MAHLE Metal Leve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAHLE Metal Leve and Uber Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Uber Technologies are associated (or correlated) with MAHLE Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAHLE Metal Leve has no effect on the direction of Uber Technologies i.e., Uber Technologies and MAHLE Metal go up and down completely randomly.
Pair Corralation between Uber Technologies and MAHLE Metal
Assuming the 90 days trading horizon Uber Technologies is expected to generate 1.63 times more return on investment than MAHLE Metal. However, Uber Technologies is 1.63 times more volatile than MAHLE Metal Leve. It trades about -0.05 of its potential returns per unit of risk. MAHLE Metal Leve is currently generating about -0.15 per unit of risk. If you would invest 11,070 in Uber Technologies on August 27, 2024 and sell it today you would lose (430.00) from holding Uber Technologies or give up 3.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uber Technologies vs. MAHLE Metal Leve
Performance |
| Timeline |
| Uber Technologies |
| MAHLE Metal Leve |
Uber Technologies and MAHLE Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and MAHLE Metal
The main advantage of trading using opposite Uber Technologies and MAHLE Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, MAHLE Metal can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MAHLE Metal will offset losses from the drop in MAHLE Metal's long position.| Uber Technologies vs. Take Two Interactive Software | Uber Technologies vs. T Mobile | Uber Technologies vs. American Airlines Group | Uber Technologies vs. Agilent Technologies |
| MAHLE Metal vs. Baidu Inc | MAHLE Metal vs. Deutsche Bank Aktiengesellschaft | MAHLE Metal vs. HSBC Holdings plc | MAHLE Metal vs. The Bank of |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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