Correlation Between Uber Technologies and IGEN Networks
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and IGEN Networks 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 IGEN Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and IGEN Networks Corp, you can compare the effects of market volatilities on Uber Technologies and IGEN Networks 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 IGEN Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and IGEN Networks.
Diversification Opportunities for Uber Technologies and IGEN Networks
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uber and IGEN is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and IGEN Networks Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGEN Networks Corp 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 IGEN Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGEN Networks Corp has no effect on the direction of Uber Technologies i.e., Uber Technologies and IGEN Networks go up and down completely randomly.
Pair Corralation between Uber Technologies and IGEN Networks
Given the investment horizon of 90 days Uber Technologies is expected to generate 16.05 times less return on investment than IGEN Networks. But when comparing it to its historical volatility, Uber Technologies is 21.21 times less risky than IGEN Networks. It trades about 0.09 of its potential returns per unit of risk. IGEN Networks Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.15 in IGEN Networks Corp on August 27, 2024 and sell it today you would lose (0.14) from holding IGEN Networks Corp or give up 93.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uber Technologies vs. IGEN Networks Corp
Performance |
| Timeline |
| Uber Technologies |
| IGEN Networks Corp |
Uber Technologies and IGEN Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and IGEN Networks
The main advantage of trading using opposite Uber Technologies and IGEN Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, IGEN Networks 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 IGEN Networks will offset losses from the drop in IGEN Networks' long position.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
| IGEN Networks vs. Salesforce | IGEN Networks vs. SAP SE ADR | IGEN Networks vs. ServiceNow | IGEN Networks vs. Intuit Inc |
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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