Correlation Between Uber Technologies and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and National CineMedia 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 National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and National CineMedia, you can compare the effects of market volatilities on Uber Technologies and National CineMedia 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 National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and National CineMedia.
Diversification Opportunities for Uber Technologies and National CineMedia
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Uber and National is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia 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 National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of Uber Technologies i.e., Uber Technologies and National CineMedia go up and down completely randomly.
Pair Corralation between Uber Technologies and National CineMedia
Given the investment horizon of 90 days Uber Technologies is expected to generate 0.59 times more return on investment than National CineMedia. However, Uber Technologies is 1.69 times less risky than National CineMedia. It trades about 0.01 of its potential returns per unit of risk. National CineMedia is currently generating about -0.04 per unit of risk. If you would invest 7,205 in Uber Technologies on September 1, 2024 and sell it today you would lose (9.00) from holding Uber Technologies or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uber Technologies vs. National CineMedia
Performance |
| Timeline |
| Uber Technologies |
| National CineMedia |
Uber Technologies and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and National CineMedia
The main advantage of trading using opposite Uber Technologies and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia's long position.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
| National CineMedia vs. Mirriad Advertising plc | National CineMedia vs. INEO Tech Corp | National CineMedia vs. Kidoz Inc | National CineMedia vs. Marchex |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |