Correlation Between Uber Technologies and Amgen

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Amgen 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 Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Amgen Inc, you can compare the effects of market volatilities on Uber Technologies and Amgen 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 Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Amgen.

Diversification Opportunities for Uber Technologies and Amgen

0.25
  Correlation Coefficient

Modest diversification

The 3 months correlation between Uber and Amgen is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc 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 Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of Uber Technologies i.e., Uber Technologies and Amgen go up and down completely randomly.

Pair Corralation between Uber Technologies and Amgen

Given the investment horizon of 90 days Uber Technologies is expected to generate 1.62 times more return on investment than Amgen. However, Uber Technologies is 1.62 times more volatile than Amgen Inc. It trades about 0.09 of its potential returns per unit of risk. Amgen Inc is currently generating about 0.02 per unit of risk. If you would invest  2,703  in Uber Technologies on September 2, 2024 and sell it today you would earn a total of  4,493  from holding Uber Technologies or generate 166.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Uber Technologies  vs.  Amgen Inc

 Performance 
       Timeline  
Uber Technologies 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Uber Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Uber Technologies is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.
Amgen Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amgen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Uber Technologies and Amgen Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Uber Technologies and Amgen

The main advantage of trading using opposite Uber Technologies and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Amgen 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 Amgen will offset losses from the drop in Amgen's long position.
The idea behind Uber Technologies and Amgen Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

Other Complementary Tools

Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA