Correlation Between Uber Technologies and Gmo Resources

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

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

Diversification Opportunities for Uber Technologies and Gmo Resources

0.65

Correlation Coefficient

Uber Technologies  Gmo Resources

Poor diversification

The 3 months correlation between Uber and Gmo is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Gmo Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Resources 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 Gmo Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Resources has no effect on the direction of Uber Technologies i.e., Uber Technologies and Gmo Resources go up and down completely randomly.

Pair Corralation between Uber Technologies and Gmo Resources

Given the investment horizon of 90 days Uber Technologies is expected to generate 2.21 times less return on investment than Gmo Resources. In addition to that, Uber Technologies is 1.37 times more volatile than Gmo Resources. It trades about 0.05 of its total potential returns per unit of risk. Gmo Resources is currently generating about 0.17 per unit of volatility. If you would invest  1,585  in Gmo Resources on May 7, 2025 and sell it today you would earn a total of  244.00  from holding Gmo Resources or generate 15.39% return on investment over 90 days.

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

Uber Technologies  vs.  Gmo Resources

Uber Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Uber Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, Uber Technologies may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Gmo Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gmo Resources are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gmo Resources showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Uber Technologies and Gmo Resources

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

The idea behind Uber Technologies and Gmo Resources 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.