Correlation Between Twitter and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Twitter 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 Twitter and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Twitter and Uber Technologies, you can compare the effects of market volatilities on Twitter 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 Twitter with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Twitter and Uber Technologies.
Diversification Opportunities for Twitter and Uber Technologies
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Twitter and Uber is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Twitter 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 Twitter 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 Twitter i.e., Twitter and Uber Technologies go up and down completely randomly.
Pair Corralation between Twitter and Uber Technologies
If you would invest 5,370 in Twitter on December 19, 2023 and sell it today you would earn a total of 0.00 from holding Twitter or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 4.76% |
Values | Daily Returns |
Twitter vs. Uber Technologies
Performance |
Timeline |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Uber Technologies |
Twitter and Uber Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Twitter and Uber Technologies
The main advantage of trading using opposite Twitter and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twitter 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.Twitter vs. Air Transport Services | Twitter vs. Nok Airlines Public | Twitter vs. Hawaiian Holdings | Twitter vs. United Airlines Holdings |
Uber Technologies vs. Unity Software | Uber Technologies vs. Daily Journal Corp | Uber Technologies vs. C3 Ai Inc | Uber Technologies vs. Blackline |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
CEOs Directory Screen CEOs from public companies around the world | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Fundamental Analysis View fundamental data based on most recent published financial statements |