Correlation Between Uber Technologies and Lifestore Financial
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Lifestore Financial 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 Lifestore Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Lifestore Financial Group, you can compare the effects of market volatilities on Uber Technologies and Lifestore Financial 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 Lifestore Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Lifestore Financial.
Diversification Opportunities for Uber Technologies and Lifestore Financial
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Uber and Lifestore is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Lifestore Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifestore Financial 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 Lifestore Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifestore Financial has no effect on the direction of Uber Technologies i.e., Uber Technologies and Lifestore Financial go up and down completely randomly.
Pair Corralation between Uber Technologies and Lifestore Financial
Given the investment horizon of 90 days Uber Technologies is expected to generate 0.81 times more return on investment than Lifestore Financial. However, Uber Technologies is 1.24 times less risky than Lifestore Financial. It trades about 0.1 of its potential returns per unit of risk. Lifestore Financial Group is currently generating about 0.01 per unit of risk. If you would invest 2,624 in Uber Technologies on September 5, 2024 and sell it today you would earn a total of 4,503 from holding Uber Technologies or generate 171.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.87% |
| Values | Daily Returns |
Uber Technologies vs. Lifestore Financial Group
Performance |
| Timeline |
| Uber Technologies |
| Lifestore Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Uber Technologies and Lifestore Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Lifestore Financial
The main advantage of trading using opposite Uber Technologies and Lifestore Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Lifestore Financial 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 Lifestore Financial will offset losses from the drop in Lifestore Financial's long position.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
| Lifestore Financial vs. NETGEAR | Lifestore Financial vs. Marfrig Global Foods | Lifestore Financial vs. Bridgford Foods | Lifestore Financial 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world |