Correlation Between UmweltBank and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both UmweltBank and Uber Technologies 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 UmweltBank and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UmweltBank AG and Uber Technologies, you can compare the effects of market volatilities on UmweltBank and Uber Technologies 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 UmweltBank with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of UmweltBank and Uber Technologies.
Diversification Opportunities for UmweltBank and Uber Technologies
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UmweltBank and Uber is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding UmweltBank AG and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and UmweltBank 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 UmweltBank AG are associated (or correlated) with Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of UmweltBank i.e., UmweltBank and Uber Technologies go up and down completely randomly.
Pair Corralation between UmweltBank and Uber Technologies
Assuming the 90 days trading horizon UmweltBank AG is expected to generate 0.76 times more return on investment than Uber Technologies. However, UmweltBank AG is 1.32 times less risky than Uber Technologies. It trades about 0.09 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.07 per unit of risk. If you would invest 574.00 in UmweltBank AG on October 11, 2024 and sell it today you would earn a total of 32.00 from holding UmweltBank AG or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UmweltBank AG vs. Uber Technologies
Performance |
| Timeline |
| UmweltBank AG |
| Uber Technologies |
UmweltBank and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UmweltBank and Uber Technologies
The main advantage of trading using opposite UmweltBank and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UmweltBank position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| UmweltBank vs. Shenandoah Telecommunications | UmweltBank vs. CRISPR Therapeutics AG | UmweltBank vs. Laureate Education | UmweltBank vs. Grand Canyon Education |
| Uber Technologies vs. ANGLO ASIAN MINING | Uber Technologies vs. T MOBILE INCDL 00001 | Uber Technologies vs. MOBILE FACTORY INC | Uber Technologies vs. FIH MOBILE |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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