Correlation Between Uber Technologies and Elicio Therapeutics

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

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

Diversification Opportunities for Uber Technologies and Elicio Therapeutics

-0.49

Correlation Coefficient

Uber Technologies  Elicio Therapeutics

Very good diversification

The 3 months correlation between Uber and Elicio is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Elicio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elicio Therapeutics 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 Elicio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elicio Therapeutics has no effect on the direction of Uber Technologies i.e., Uber Technologies and Elicio Therapeutics go up and down completely randomly.

Pair Corralation between Uber Technologies and Elicio Therapeutics

Given the investment horizon of 90 days Uber Technologies is expected to under-perform the Elicio Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Uber Technologies is 1.66 times less risky than Elicio Therapeutics. The stock trades about -0.29 of its potential returns per unit of risk. The Elicio Therapeutics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  500.00  in Elicio Therapeutics on September 25, 2024 and sell it today you would earn a total of  3.00  from holding Elicio Therapeutics or generate 0.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Uber Technologies  vs.  Elicio Therapeutics

Uber Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Uber Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Elicio Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Elicio Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Elicio Therapeutics is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Uber Technologies and Elicio Therapeutics

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

The idea behind Uber Technologies and Elicio Therapeutics 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.