Correlation Between Uber Technologies and Umpqua Holdings
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Umpqua Holdings 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 Umpqua Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Umpqua Holdings, you can compare the effects of market volatilities on Uber Technologies and Umpqua Holdings 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 Umpqua Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Umpqua Holdings.
Diversification Opportunities for Uber Technologies and Umpqua Holdings
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uber and Umpqua is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Umpqua Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Umpqua Holdings 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 Umpqua Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Umpqua Holdings has no effect on the direction of Uber Technologies i.e., Uber Technologies and Umpqua Holdings go up and down completely randomly.
Pair Corralation between Uber Technologies and Umpqua Holdings
Given the investment horizon of 90 days Uber Technologies is expected to generate 1.52 times more return on investment than Umpqua Holdings. However, Uber Technologies is 1.52 times more volatile than Umpqua Holdings. It trades about 0.09 of its potential returns per unit of risk. Umpqua Holdings is currently generating about 0.04 per unit of risk. If you would invest 2,440 in Uber Technologies on September 14, 2024 and sell it today you would earn a total of 3,701 from holding Uber Technologies or generate 151.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 9.11% |
| Values | Daily Returns |
Uber Technologies vs. Umpqua Holdings
Performance |
| Timeline |
| Uber Technologies |
| Umpqua Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Uber Technologies and Umpqua Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Umpqua Holdings
The main advantage of trading using opposite Uber Technologies and Umpqua Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Umpqua Holdings 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 Umpqua Holdings will offset losses from the drop in Umpqua Holdings' long position.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
| Umpqua Holdings vs. Nexstar Broadcasting Group | Umpqua Holdings vs. Ihuman Inc | Umpqua Holdings vs. American Airlines Group | Umpqua Holdings vs. Saia 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |