Correlation Between GWILLI FOOD and Uber Technologies,

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

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

Diversification Opportunities for GWILLI FOOD and Uber Technologies,

-0.78

Correlation Coefficient

GWILLI FOOD  Uber Technologies,

Pay attention - limited upside

The 3 months correlation between GWILLI and Uber is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and Uber Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies, and GWILLI FOOD 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 GWILLI FOOD 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 GWILLI FOOD i.e., GWILLI FOOD and Uber Technologies, go up and down completely randomly.

Pair Corralation between GWILLI FOOD and Uber Technologies,

Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 12.3 times less return on investment than Uber Technologies,. But when comparing it to its historical volatility, GWILLI FOOD is 2.35 times less risky than Uber Technologies,. It trades about 0.03 of its potential returns per unit of risk. Uber Technologies, is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  2,380  in Uber Technologies, on October 26, 2024 and sell it today you would earn a total of  240.00  from holding Uber Technologies, or generate 10.08% return on investment over 90 days.

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

GWILLI FOOD  vs.  Uber Technologies,

GWILLI FOOD

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GWILLI FOOD are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, GWILLI FOOD exhibited solid returns over the last few months and may actually be approaching a breakup point.

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. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with GWILLI FOOD and Uber Technologies,

The main advantage of trading using opposite GWILLI FOOD and Uber Technologies, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD 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,'s long position.

The idea behind GWILLI FOOD 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.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.