Correlation Between Uber Technologies and Gan Shmuel
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Gan Shmuel 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 Gan Shmuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Gan Shmuel, you can compare the effects of market volatilities on Uber Technologies and Gan Shmuel 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 Gan Shmuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Gan Shmuel.
Diversification Opportunities for Uber Technologies and Gan Shmuel
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Uber and Gan is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Gan Shmuel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Shmuel 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 Gan Shmuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Shmuel has no effect on the direction of Uber Technologies i.e., Uber Technologies and Gan Shmuel go up and down completely randomly.
Pair Corralation between Uber Technologies and Gan Shmuel
Given the investment horizon of 90 days Uber Technologies is expected to under-perform the Gan Shmuel. But the stock apears to be less risky and, when comparing its historical volatility, Uber Technologies is 3.37 times less risky than Gan Shmuel. The stock trades about -0.29 of its potential returns per unit of risk. The Gan Shmuel is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 170,151 in Gan Shmuel on January 25, 2024 and sell it today you would earn a total of 74,249 from holding Gan Shmuel or generate 43.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Uber Technologies vs. Gan Shmuel
Performance |
| Timeline |
| Uber Technologies |
| Gan Shmuel |
Uber Technologies and Gan Shmuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Gan Shmuel
The main advantage of trading using opposite Uber Technologies and Gan Shmuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Gan Shmuel 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 Gan Shmuel will offset losses from the drop in Gan Shmuel's long position.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
| Gan Shmuel vs. Aryt Industries | Gan Shmuel vs. Scope Metals Group | Gan Shmuel vs. Delek Automotive Systems |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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