Correlation Between Uber Technologies and OAKRIDGE INTERNATIONAL

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

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

Diversification Opportunities for Uber Technologies and OAKRIDGE INTERNATIONAL

0.09

Correlation Coefficient

Uber Technologies  OAKRIDGE INTERNATIONAL

Significant diversification

The 3 months correlation between Uber and OAKRIDGE is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and OAKRIDGE INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKRIDGE INTERNATIONAL has no effect on the direction of Uber Technologies i.e., Uber Technologies and OAKRIDGE INTERNATIONAL go up and down completely randomly.

Pair Corralation between Uber Technologies and OAKRIDGE INTERNATIONAL

Assuming the 90 days trading horizon Uber Technologies is expected to generate 2.22 times less return on investment than OAKRIDGE INTERNATIONAL. But when comparing it to its historical volatility, Uber Technologies is 4.68 times less risky than OAKRIDGE INTERNATIONAL. It trades about 0.11 of its potential returns per unit of risk. OAKRIDGE INTERNATIONAL is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3.30  in OAKRIDGE INTERNATIONAL on December 28, 2024 and sell it today you would lose (0.30) from holding OAKRIDGE INTERNATIONAL or give up 9.09% of portfolio value over 90 days.

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

Uber Technologies  vs.  OAKRIDGE INTERNATIONAL

Uber Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Uber Technologies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Uber Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

OAKRIDGE INTERNATIONAL

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in OAKRIDGE INTERNATIONAL are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, OAKRIDGE INTERNATIONAL reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Uber Technologies and OAKRIDGE INTERNATIONAL

The main advantage of trading using opposite Uber Technologies and OAKRIDGE INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL will offset losses from the drop in OAKRIDGE INTERNATIONAL's long position.

The idea behind Uber Technologies and OAKRIDGE INTERNATIONAL 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.