Correlation Between Macys and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Macys 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 Macys and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macys Inc and Uber Technologies, you can compare the effects of market volatilities on Macys 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 Macys with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macys and Uber Technologies.
Diversification Opportunities for Macys and Uber Technologies
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Macys and Uber is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Macys 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 Macys Inc 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 Macys i.e., Macys and Uber Technologies go up and down completely randomly.
Pair Corralation between Macys and Uber Technologies
Taking into account the 90-day investment horizon Macys Inc is expected to under-perform the Uber Technologies. In addition to that, Macys is 1.36 times more volatile than Uber Technologies. It trades about -0.25 of its total potential returns per unit of risk. Uber Technologies is currently generating about -0.33 per unit of volatility. If you would invest 7,864 in Uber Technologies on January 20, 2024 and sell it today you would lose (944.00) from holding Uber Technologies or give up 12.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Macys Inc vs. Uber Technologies
Performance |
Timeline |
Macys Inc |
Uber Technologies |
Macys and Uber Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Macys and Uber Technologies
The main advantage of trading using opposite Macys and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macys 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.Macys vs. Marks Spencer Group | Macys vs. Marks and Spencer | Macys vs. Dillards Capital Trust | Macys vs. Companhia Brasileira de |
Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |