Correlation Between URBAN OUTFITTERS and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both URBAN OUTFITTERS 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 URBAN OUTFITTERS and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between URBAN OUTFITTERS and Uber Technologies, you can compare the effects of market volatilities on URBAN OUTFITTERS 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 URBAN OUTFITTERS with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of URBAN OUTFITTERS and Uber Technologies.
Diversification Opportunities for URBAN OUTFITTERS and Uber Technologies
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between URBAN and Uber is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding URBAN OUTFITTERS and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and URBAN OUTFITTERS 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 URBAN OUTFITTERS 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 URBAN OUTFITTERS i.e., URBAN OUTFITTERS and Uber Technologies go up and down completely randomly.
Pair Corralation between URBAN OUTFITTERS and Uber Technologies
Assuming the 90 days trading horizon URBAN OUTFITTERS is expected to generate 2.09 times more return on investment than Uber Technologies. However, URBAN OUTFITTERS is 2.09 times more volatile than Uber Technologies. It trades about 0.39 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.34 per unit of risk. If you would invest 3,700 in URBAN OUTFITTERS on September 25, 2024 and sell it today you would earn a total of 1,550 from holding URBAN OUTFITTERS or generate 41.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
URBAN OUTFITTERS vs. Uber Technologies
Performance |
| Timeline |
| URBAN OUTFITTERS |
| Uber Technologies |
URBAN OUTFITTERS and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with URBAN OUTFITTERS and Uber Technologies
The main advantage of trading using opposite URBAN OUTFITTERS and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if URBAN OUTFITTERS 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.| URBAN OUTFITTERS vs. Apple Inc | URBAN OUTFITTERS vs. Apple Inc | URBAN OUTFITTERS vs. Apple Inc | URBAN OUTFITTERS vs. Microsoft |
| Uber Technologies vs. FUYO GENERAL LEASE | Uber Technologies vs. PLAYSTUDIOS A DL 0001 | Uber Technologies vs. Air Lease | Uber Technologies vs. Highlight Communications AG |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |