Correlation Between Uber Technologies and Bolt Projects

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

Diversification Opportunities for Uber Technologies and Bolt Projects

0.28
  Correlation Coefficient

Modest diversification

The 3 months correlation between Uber and Bolt is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Bolt Projects Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Projects Holdings, 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 Bolt Projects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Projects Holdings, has no effect on the direction of Uber Technologies i.e., Uber Technologies and Bolt Projects go up and down completely randomly.

Pair Corralation between Uber Technologies and Bolt Projects

Given the investment horizon of 90 days Uber Technologies is expected to generate 25.21 times less return on investment than Bolt Projects. But when comparing it to its historical volatility, Uber Technologies is 13.49 times less risky than Bolt Projects. It trades about 0.13 of its potential returns per unit of risk. Bolt Projects Holdings, is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  2.10  in Bolt Projects Holdings, on November 28, 2024 and sell it today you would earn a total of  2.40  from holding Bolt Projects Holdings, or generate 114.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy66.67%
ValuesDaily Returns

Uber Technologies  vs.  Bolt Projects Holdings,

 Performance 
       Timeline  
Uber Technologies 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Uber Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, Uber Technologies may actually be approaching a critical reversion point that can send shares even higher in March 2025.
Bolt Projects Holdings, 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Bolt Projects Holdings, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating forward-looking signals, Bolt Projects showed solid returns over the last few months and may actually be approaching a breakup point.

Uber Technologies and Bolt Projects Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Uber Technologies and Bolt Projects

The main advantage of trading using opposite Uber Technologies and Bolt Projects positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Bolt Projects 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 Bolt Projects will offset losses from the drop in Bolt Projects' long position.
The idea behind Uber Technologies and Bolt Projects Holdings, 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.
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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