Correlation Between Uber Technologies and Nike
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Nike 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 Nike into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Nike Inc, you can compare the effects of market volatilities on Uber Technologies and Nike 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 Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Nike.
Diversification Opportunities for Uber Technologies and Nike
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Uber and Nike is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike 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 Nike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nike Inc has no effect on the direction of Uber Technologies i.e., Uber Technologies and Nike go up and down completely randomly.
Pair Corralation between Uber Technologies and Nike
Given the investment horizon of 90 days Uber Technologies is expected to under-perform the Nike. In addition to that, Uber Technologies is 1.57 times more volatile than Nike Inc. It trades about -0.15 of its total potential returns per unit of risk. Nike Inc is currently generating about 0.01 per unit of volatility. If you would invest 7,840 in Nike Inc on August 30, 2024 and sell it today you would lose (6.00) from holding Nike Inc or give up 0.08% 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. Nike Inc
Performance |
| Timeline |
| Uber Technologies |
| Nike Inc |
Uber Technologies and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Nike
The main advantage of trading using opposite Uber Technologies and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Nike 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 Nike will offset losses from the drop in Nike's long position.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |