Correlation Between Getty Copper and Uber Technologies

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

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

Diversification Opportunities for Getty Copper and Uber Technologies

-0.84

Correlation Coefficient

Getty Copper  Uber Technologies

Pay attention - limited upside

The 3 months correlation between Getty and Uber is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Getty Copper and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Getty Copper 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 Getty Copper 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 Getty Copper i.e., Getty Copper and Uber Technologies go up and down completely randomly.

Pair Corralation between Getty Copper and Uber Technologies

Assuming the 90 days horizon Getty Copper is expected to under-perform the Uber Technologies. In addition to that, Getty Copper is 2.81 times more volatile than Uber Technologies. It trades about -0.13 of its total potential returns per unit of risk. Uber Technologies is currently generating about 0.12 per unit of volatility. If you would invest  6,021  in Uber Technologies on December 19, 2024 and sell it today you would earn a total of  1,134  from holding Uber Technologies or generate 18.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	93.65%
Values	Daily Returns

Getty Copper  vs.  Uber Technologies

Getty Copper

Risk-Adjusted Performance

Very Weak

Over the last 90 days Getty Copper 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 fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Uber Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Uber Technologies are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, Uber Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Getty Copper and Uber Technologies

The main advantage of trading using opposite Getty Copper and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Copper 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 Getty Copper 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.