Correlation Between Liberty Resources and Uber Technologies

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

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

Diversification Opportunities for Liberty Resources and Uber Technologies

0.0

Correlation Coefficient

Liberty Resources  Uber Technologies

Pay attention - limited upside

The 3 months correlation between Liberty and Uber is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Resources Acquisition and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Liberty Resources 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 Liberty Resources Acquisition 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 Liberty Resources i.e., Liberty Resources and Uber Technologies go up and down completely randomly.

Pair Corralation between Liberty Resources and Uber Technologies

If you would invest  6,113  in Uber Technologies on December 27, 2024 and sell it today you would earn a total of  1,373  from holding Uber Technologies or generate 22.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Liberty Resources Acquisition  vs.  Uber Technologies

Liberty Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Liberty Resources Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Liberty Resources is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Uber Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Uber Technologies are ranked lower than 10 (%) 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 Liberty Resources and Uber Technologies

The main advantage of trading using opposite Liberty Resources and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Resources 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 Liberty Resources Acquisition 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.