Correlation Between Uber Technologies and Lafarge North
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Lafarge North 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 Lafarge North into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Lafarge North America, you can compare the effects of market volatilities on Uber Technologies and Lafarge North 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 Lafarge North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Lafarge North.
Diversification Opportunities for Uber Technologies and Lafarge North
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Uber and Lafarge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Lafarge North America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lafarge North America 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 Lafarge North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lafarge North America has no effect on the direction of Uber Technologies i.e., Uber Technologies and Lafarge North go up and down completely randomly.
Pair Corralation between Uber Technologies and Lafarge North
If you would invest (100.00) in Lafarge North America on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Lafarge North America or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Uber Technologies vs. Lafarge North America
Performance |
| Timeline |
| Uber Technologies |
| Lafarge North America |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Uber Technologies and Lafarge North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Lafarge North
The main advantage of trading using opposite Uber Technologies and Lafarge North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Lafarge North 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 Lafarge North will offset losses from the drop in Lafarge North's long position.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
| Lafarge North vs. Kaltura | Lafarge North vs. United Rentals | Lafarge North vs. VirnetX Holding Corp | Lafarge North 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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