Correlation Between Uber Technologies and FAST RETAIL
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and FAST RETAIL 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 FAST RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and FAST RETAIL ADR, you can compare the effects of market volatilities on Uber Technologies and FAST RETAIL 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 FAST RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and FAST RETAIL.
Diversification Opportunities for Uber Technologies and FAST RETAIL
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uber and FAST is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and FAST RETAIL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAIL ADR 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 FAST RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAIL ADR has no effect on the direction of Uber Technologies i.e., Uber Technologies and FAST RETAIL go up and down completely randomly.
Pair Corralation between Uber Technologies and FAST RETAIL
Assuming the 90 days trading horizon Uber Technologies is expected to under-perform the FAST RETAIL. In addition to that, Uber Technologies is 1.36 times more volatile than FAST RETAIL ADR. It trades about -0.34 of its total potential returns per unit of risk. FAST RETAIL ADR is currently generating about 0.1 per unit of volatility. If you would invest 3,080 in FAST RETAIL ADR on September 25, 2024 and sell it today you would earn a total of 100.00 from holding FAST RETAIL ADR or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uber Technologies vs. FAST RETAIL ADR
Performance |
| Timeline |
| Uber Technologies |
| FAST RETAIL ADR |
Uber Technologies and FAST RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and FAST RETAIL
The main advantage of trading using opposite Uber Technologies and FAST RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, FAST RETAIL 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 FAST RETAIL will offset losses from the drop in FAST RETAIL's long position.| Uber Technologies vs. FUYO GENERAL LEASE | Uber Technologies vs. PLAYSTUDIOS A DL 0001 | Uber Technologies vs. Air Lease | Uber Technologies vs. Highlight Communications AG |
| FAST RETAIL vs. FAST RETAILCOSPHDR 1 | FAST RETAIL vs. Ross Stores | FAST RETAIL vs. Stitch Fix | FAST RETAIL vs. AOYAMA TRADING |
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.
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