Correlation Between Uber Technologies and Transport International
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Transport International 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 Transport International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Transport International Holdings, you can compare the effects of market volatilities on Uber Technologies and Transport International 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 Transport International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Transport International.
Diversification Opportunities for Uber Technologies and Transport International
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Uber and Transport is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Transport International Holdin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transport International 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 Transport International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transport International has no effect on the direction of Uber Technologies i.e., Uber Technologies and Transport International go up and down completely randomly.
Pair Corralation between Uber Technologies and Transport International
Assuming the 90 days trading horizon Uber Technologies is expected to generate 3.04 times less return on investment than Transport International. But when comparing it to its historical volatility, Uber Technologies is 2.07 times less risky than Transport International. It trades about 0.04 of its potential returns per unit of risk. Transport International Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 56.00 in Transport International Holdings on September 4, 2024 and sell it today you would earn a total of 40.00 from holding Transport International Holdings or generate 71.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Uber Technologies vs. Transport International Holdin
Performance |
| Timeline |
| Uber Technologies |
| Transport International |
Uber Technologies and Transport International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Transport International
The main advantage of trading using opposite Uber Technologies and Transport International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Transport International 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 Transport International will offset losses from the drop in Transport International's long position.| Uber Technologies vs. SERI INDUSTRIAL EO | Uber Technologies vs. TYSON FOODS A | Uber Technologies vs. Harmony Gold Mining | Uber Technologies vs. GREENX METALS LTD |
| Transport International vs. Superior Plus Corp | Transport International vs. NMI Holdings | Transport International vs. Origin Agritech | Transport International vs. SIVERS SEMICONDUCTORS AB |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |