Correlation Between Uber Technologies and Getty Images
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Getty Images 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 Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Getty Images Holdings, you can compare the effects of market volatilities on Uber Technologies and Getty Images 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 Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Getty Images.
Diversification Opportunities for Uber Technologies and Getty Images
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Uber and Getty is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Uber Technologies i.e., Uber Technologies and Getty Images go up and down completely randomly.
Pair Corralation between Uber Technologies and Getty Images
Given the investment horizon of 90 days Uber Technologies is expected to generate 0.72 times more return on investment than Getty Images. However, Uber Technologies is 1.39 times less risky than Getty Images. It trades about 0.01 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.08 per unit of risk. If you would invest 7,189 in Uber Technologies on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Uber Technologies or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uber Technologies vs. Getty Images Holdings
Performance |
| Timeline |
| Uber Technologies |
| Getty Images Holdings |
Uber Technologies and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Getty Images
The main advantage of trading using opposite Uber Technologies and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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