Correlation Between Uber Technologies and PG E
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and PG E 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 PG E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and PG E P6, you can compare the effects of market volatilities on Uber Technologies and PG E 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 PG E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and PG E.
Diversification Opportunities for Uber Technologies and PG E
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uber and PCG6 is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and PG E P6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PG E P6 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 PG E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PG E P6 has no effect on the direction of Uber Technologies i.e., Uber Technologies and PG E go up and down completely randomly.
Pair Corralation between Uber Technologies and PG E
Assuming the 90 days trading horizon Uber Technologies is expected to under-perform the PG E. In addition to that, Uber Technologies is 2.09 times more volatile than PG E P6. It trades about -0.04 of its total potential returns per unit of risk. PG E P6 is currently generating about 0.0 per unit of volatility. If you would invest 2,142 in PG E P6 on October 25, 2024 and sell it today you would lose (2.00) from holding PG E P6 or give up 0.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Uber Technologies vs. PG E P6
Performance |
Timeline |
Uber Technologies |
PG E P6 |
Uber Technologies and PG E Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Uber Technologies and PG E
The main advantage of trading using opposite Uber Technologies and PG E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, PG E 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 PG E will offset losses from the drop in PG E's long position.Uber Technologies vs. Apple Inc | ||
Uber Technologies vs. Apple Inc | ||
Uber Technologies vs. Apple Inc | ||
Uber Technologies vs. Apple Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |