Correlation Between Uber Technologies and ING Groep
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and ING Groep 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 ING Groep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and ING Groep NV, you can compare the effects of market volatilities on Uber Technologies and ING Groep 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 ING Groep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and ING Groep.
Diversification Opportunities for Uber Technologies and ING Groep
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Uber and ING is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and ING Groep NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING Groep NV 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 ING Groep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING Groep NV has no effect on the direction of Uber Technologies i.e., Uber Technologies and ING Groep go up and down completely randomly.
Pair Corralation between Uber Technologies and ING Groep
Assuming the 90 days trading horizon Uber Technologies is expected to generate 1.64 times more return on investment than ING Groep. However, Uber Technologies is 1.64 times more volatile than ING Groep NV. It trades about 0.09 of its potential returns per unit of risk. ING Groep NV is currently generating about 0.06 per unit of risk. If you would invest 2,606 in Uber Technologies on September 3, 2024 and sell it today you would earn a total of 4,235 from holding Uber Technologies or generate 162.51% 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. ING Groep NV
Performance |
| Timeline |
| Uber Technologies |
| ING Groep NV |
Uber Technologies and ING Groep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and ING Groep
The main advantage of trading using opposite Uber Technologies and ING Groep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, ING Groep 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 ING Groep will offset losses from the drop in ING Groep's long position.| Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc |
| ING Groep vs. GEAR4MUSIC LS 10 | ING Groep vs. Uber Technologies | ING Groep vs. GRIFFIN MINING LTD | ING Groep vs. Harmony Gold Mining |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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