Correlation Between Uber Technologies and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Jacquet Metal 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 Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Jacquet Metal Service, you can compare the effects of market volatilities on Uber Technologies and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Jacquet Metal.
Diversification Opportunities for Uber Technologies and Jacquet Metal
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uber and Jacquet is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Uber Technologies i.e., Uber Technologies and Jacquet Metal go up and down completely randomly.
Pair Corralation between Uber Technologies and Jacquet Metal
Assuming the 90 days trading horizon Uber Technologies is expected to generate 1.67 times more return on investment than Jacquet Metal. However, Uber Technologies is 1.67 times more volatile than Jacquet Metal Service. It trades about 0.01 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.0 per unit of risk. If you would invest 5,873 in Uber Technologies on September 24, 2024 and sell it today you would lose (3.00) from holding Uber Technologies or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uber Technologies vs. Jacquet Metal Service
Performance |
| Timeline |
| Uber Technologies |
| Jacquet Metal Service |
Uber Technologies and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Jacquet Metal
The main advantage of trading using opposite Uber Technologies and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| Uber Technologies vs. BW OFFSHORE LTD | Uber Technologies vs. Jacquet Metal Service | Uber Technologies vs. WT OFFSHORE | Uber Technologies vs. ADRIATIC METALS LS 013355 |
| Jacquet Metal vs. Nucor | Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. Steel Dynamics |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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