Correlation Between Uber Technologies and DigiCom Berhad
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and DigiCom Berhad 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 DigiCom Berhad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and DigiCom Berhad, you can compare the effects of market volatilities on Uber Technologies and DigiCom Berhad 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 DigiCom Berhad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and DigiCom Berhad.
Diversification Opportunities for Uber Technologies and DigiCom Berhad
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uber and DigiCom is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and DigiCom Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiCom Berhad 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 DigiCom Berhad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiCom Berhad has no effect on the direction of Uber Technologies i.e., Uber Technologies and DigiCom Berhad go up and down completely randomly.
Pair Corralation between Uber Technologies and DigiCom Berhad
Given the investment horizon of 90 days Uber Technologies is expected to generate 4.77 times more return on investment than DigiCom Berhad. However, Uber Technologies is 4.77 times more volatile than DigiCom Berhad. It trades about 0.09 of its potential returns per unit of risk. DigiCom Berhad is currently generating about 0.12 per unit of risk. If you would invest 2,703 in Uber Technologies on September 1, 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 Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 29.09% |
| Values | Daily Returns |
Uber Technologies vs. DigiCom Berhad
Performance |
| Timeline |
| Uber Technologies |
| DigiCom Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Uber Technologies and DigiCom Berhad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and DigiCom Berhad
The main advantage of trading using opposite Uber Technologies and DigiCom Berhad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, DigiCom Berhad 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 DigiCom Berhad will offset losses from the drop in DigiCom Berhad's long position.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
| DigiCom Berhad vs. China Tontine Wines | DigiCom Berhad vs. Uber Technologies | DigiCom Berhad vs. Oatly Group AB | DigiCom Berhad vs. Diageo PLC ADR |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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