Correlation Between Uber Technologies and Trump Media
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Trump Media 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 Trump Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Trump Media Technology, you can compare the effects of market volatilities on Uber Technologies and Trump Media 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 Trump Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Trump Media.
Diversification Opportunities for Uber Technologies and Trump Media
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Uber and Trump is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Trump Media Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trump Media Technology 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 Trump Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trump Media Technology has no effect on the direction of Uber Technologies i.e., Uber Technologies and Trump Media go up and down completely randomly.
Pair Corralation between Uber Technologies and Trump Media
Given the investment horizon of 90 days Uber Technologies is expected to under-perform the Trump Media. But the stock apears to be less risky and, when comparing its historical volatility, Uber Technologies is 4.86 times less risky than Trump Media. The stock trades about -0.04 of its potential returns per unit of risk. The Trump Media Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,056 in Trump Media Technology on September 2, 2024 and sell it today you would earn a total of 104.00 from holding Trump Media Technology or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uber Technologies vs. Trump Media Technology
Performance |
| Timeline |
| Uber Technologies |
| Trump Media Technology |
Uber Technologies and Trump Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Trump Media
The main advantage of trading using opposite Uber Technologies and Trump Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Trump Media 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 Trump Media will offset losses from the drop in Trump Media's long position.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
| Trump Media vs. Lipocine | Trump Media vs. Here Media | Trump Media vs. Arrow Financial | Trump Media vs. Uber Technologies |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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