Correlation Between Uber Technologies and Cingulate

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

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

Diversification Opportunities for Uber Technologies and Cingulate

0.18

Correlation Coefficient

Uber Technologies  Cingulate

Average diversification

The 3 months correlation between Uber and Cingulate is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Cingulate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cingulate 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 Cingulate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cingulate has no effect on the direction of Uber Technologies i.e., Uber Technologies and Cingulate go up and down completely randomly.

Pair Corralation between Uber Technologies and Cingulate

Given the investment horizon of 90 days Uber Technologies is expected to generate 9.43 times less return on investment than Cingulate. But when comparing it to its historical volatility, Uber Technologies is 2.11 times less risky than Cingulate. It trades about 0.02 of its potential returns per unit of risk. Cingulate is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  408.00  in Cingulate on May 4, 2025 and sell it today you would earn a total of  102.00  from holding Cingulate or generate 25.0% return on investment over 90 days.

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

Uber Technologies  vs.  Cingulate

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.

Cingulate

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cingulate are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Cingulate reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Uber Technologies and Cingulate

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

The idea behind Uber Technologies and Cingulate 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.