Correlation Between Cirmaker Technology and Uber Technologies

Can any of the company-specific risk be diversified away by investing in both Cirmaker Technology and Uber Technologies 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 Cirmaker Technology and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cirmaker Technology and Uber Technologies, you can compare the effects of market volatilities on Cirmaker Technology and Uber Technologies 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 Cirmaker Technology with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cirmaker Technology and Uber Technologies.

Diversification Opportunities for Cirmaker Technology and Uber Technologies

0.35

Correlation Coefficient

Cirmaker Technology  Uber Technologies

Weak diversification

The 3 months correlation between Cirmaker and Uber is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cirmaker Technology and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Cirmaker Technology 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 Cirmaker Technology are associated (or correlated) with Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Cirmaker Technology i.e., Cirmaker Technology and Uber Technologies go up and down completely randomly.

Pair Corralation between Cirmaker Technology and Uber Technologies

Given the investment horizon of 90 days Cirmaker Technology is expected to generate 2.19 times more return on investment than Uber Technologies. However, Cirmaker Technology is 2.19 times more volatile than Uber Technologies. It trades about 0.23 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.03 per unit of risk. If you would invest  4.50  in Cirmaker Technology on October 8, 2024 and sell it today you would earn a total of  0.90  from holding Cirmaker Technology or generate 20.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Cirmaker Technology  vs.  Uber Technologies

Cirmaker Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cirmaker Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, Cirmaker Technology is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Uber Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Uber Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Cirmaker Technology and Uber Technologies

The main advantage of trading using opposite Cirmaker Technology and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirmaker Technology position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.

The idea behind Cirmaker Technology and Uber Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.