Correlation Between Uber Technologies and Apellis Pharmaceuticals

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

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

Diversification Opportunities for Uber Technologies and Apellis Pharmaceuticals

-0.03

Correlation Coefficient

Uber Technologies  Apellis Pharmaceuticals

Good diversification

The 3 months correlation between Uber and Apellis is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Apellis Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apellis Pharmaceuticals 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 Apellis Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apellis Pharmaceuticals has no effect on the direction of Uber Technologies i.e., Uber Technologies and Apellis Pharmaceuticals go up and down completely randomly.

Pair Corralation between Uber Technologies and Apellis Pharmaceuticals

Given the investment horizon of 90 days Uber Technologies is expected to generate 6.26 times less return on investment than Apellis Pharmaceuticals. But when comparing it to its historical volatility, Uber Technologies is 1.97 times less risky than Apellis Pharmaceuticals. It trades about 0.02 of its potential returns per unit of risk. Apellis Pharmaceuticals is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,998  in Apellis Pharmaceuticals on May 5, 2025 and sell it today you would earn a total of  297.00  from holding Apellis Pharmaceuticals or generate 14.86% return on investment over 90 days.

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

Uber Technologies  vs.  Apellis Pharmaceuticals

Uber Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Uber Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Uber Technologies is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Apellis Pharmaceuticals

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Apellis Pharmaceuticals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady essential indicators, Apellis Pharmaceuticals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Uber Technologies and Apellis Pharmaceuticals

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

The idea behind Uber Technologies and Apellis Pharmaceuticals 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.