Correlation Between Uber Technologies and CI GAMES
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and CI GAMES 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 CI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and CI GAMES SA, you can compare the effects of market volatilities on Uber Technologies and CI GAMES 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 CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and CI GAMES.
Diversification Opportunities for Uber Technologies and CI GAMES
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Uber and CI7 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and CI GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI GAMES SA 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 CI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI GAMES SA has no effect on the direction of Uber Technologies i.e., Uber Technologies and CI GAMES go up and down completely randomly.
Pair Corralation between Uber Technologies and CI GAMES
Assuming the 90 days trading horizon Uber Technologies is expected to generate 0.53 times more return on investment than CI GAMES. However, Uber Technologies is 1.88 times less risky than CI GAMES. It trades about 0.13 of its potential returns per unit of risk. CI GAMES SA is currently generating about -0.09 per unit of risk. If you would invest 6,513 in Uber Technologies on September 1, 2024 and sell it today you would earn a total of 328.00 from holding Uber Technologies or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uber Technologies vs. CI GAMES SA
Performance |
| Timeline |
| Uber Technologies |
| CI GAMES SA |
Uber Technologies and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and CI GAMES
The main advantage of trading using opposite Uber Technologies and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, CI GAMES 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 CI GAMES will offset losses from the drop in CI GAMES's long position.| Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc |
| CI GAMES vs. PT Bank Maybank | CI GAMES vs. REVO INSURANCE SPA | CI GAMES vs. The Hanover Insurance | CI GAMES vs. Webster Financial |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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