Correlation Between Uber Technologies and Aquestive Therapeutics
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Aquestive Therapeutics 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 Aquestive Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Aquestive Therapeutics, you can compare the effects of market volatilities on Uber Technologies and Aquestive Therapeutics 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 Aquestive Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Aquestive Therapeutics.
Diversification Opportunities for Uber Technologies and Aquestive Therapeutics
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Uber and Aquestive is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Aquestive Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquestive Therapeutics 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 Aquestive Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquestive Therapeutics has no effect on the direction of Uber Technologies i.e., Uber Technologies and Aquestive Therapeutics go up and down completely randomly.
Pair Corralation between Uber Technologies and Aquestive Therapeutics
Given the investment horizon of 90 days Uber Technologies is expected to generate 0.69 times more return on investment than Aquestive Therapeutics. However, Uber Technologies is 1.44 times less risky than Aquestive Therapeutics. It trades about -0.22 of its potential returns per unit of risk. Aquestive Therapeutics is currently generating about -0.2 per unit of risk. If you would invest 6,933 in Uber Technologies on September 19, 2024 and sell it today you would lose (908.00) from holding Uber Technologies or give up 13.1% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Uber Technologies vs. Aquestive Therapeutics
Performance |
Timeline |
Uber Technologies |
Aquestive Therapeutics |
Uber Technologies and Aquestive Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Uber Technologies and Aquestive Therapeutics
The main advantage of trading using opposite Uber Technologies and Aquestive Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Aquestive Therapeutics 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 Aquestive Therapeutics will offset losses from the drop in Aquestive Therapeutics' long position.Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
Aquestive Therapeutics vs. Emergent Biosolutions | Aquestive Therapeutics vs. Neurocrine Biosciences | Aquestive Therapeutics vs. Teva Pharma Industries | Aquestive Therapeutics vs. Haleon plc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |