Correlation Between Uber Technologies and Ascendas Real
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Ascendas Real 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 Ascendas Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Ascendas Real Estate, you can compare the effects of market volatilities on Uber Technologies and Ascendas Real 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 Ascendas Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Ascendas Real.
Diversification Opportunities for Uber Technologies and Ascendas Real
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Uber and Ascendas is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Ascendas Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendas Real Estate 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 Ascendas Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendas Real Estate has no effect on the direction of Uber Technologies i.e., Uber Technologies and Ascendas Real go up and down completely randomly.
Pair Corralation between Uber Technologies and Ascendas Real
Assuming the 90 days trading horizon Uber Technologies is expected to generate 1.42 times more return on investment than Ascendas Real. However, Uber Technologies is 1.42 times more volatile than Ascendas Real Estate. It trades about 0.09 of its potential returns per unit of risk. Ascendas Real Estate is currently generating about 0.02 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 | 99.8% |
| Values | Daily Returns |
Uber Technologies vs. Ascendas Real Estate
Performance |
| Timeline |
| Uber Technologies |
| Ascendas Real Estate |
Uber Technologies and Ascendas Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Ascendas Real
The main advantage of trading using opposite Uber Technologies and Ascendas Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Ascendas Real 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 Ascendas Real will offset losses from the drop in Ascendas Real's long position.| Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc |
| Ascendas Real vs. Uber Technologies | Ascendas Real vs. Lion Biotechnologies | Ascendas Real vs. THORNEY TECHS LTD | Ascendas Real vs. INTER CARS SA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |