Correlation Between Uber Technologies and Ihuman
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Ihuman 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 Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Ihuman Inc, you can compare the effects of market volatilities on Uber Technologies and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Ihuman.
Diversification Opportunities for Uber Technologies and Ihuman
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Uber and Ihuman is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Uber Technologies i.e., Uber Technologies and Ihuman go up and down completely randomly.
Pair Corralation between Uber Technologies and Ihuman
Given the investment horizon of 90 days Uber Technologies is expected to generate 0.77 times more return on investment than Ihuman. However, Uber Technologies is 1.3 times less risky than Ihuman. It trades about -0.04 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.14 per unit of risk. If you would invest 7,325 in Uber Technologies on September 3, 2024 and sell it today you would lose (129.00) from holding Uber Technologies or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uber Technologies vs. Ihuman Inc
Performance |
| Timeline |
| Uber Technologies |
| Ihuman Inc |
Uber Technologies and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Ihuman
The main advantage of trading using opposite Uber Technologies and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |