Correlation Between Uber Technologies and LOCKHEED

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

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

Diversification Opportunities for Uber Technologies and LOCKHEED

0.24

Correlation Coefficient

Uber Technologies  LOCKHEED

Modest diversification

The 3 months correlation between Uber and LOCKHEED is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and LOCKHEED MARTIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOCKHEED MARTIN P 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 LOCKHEED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOCKHEED MARTIN P has no effect on the direction of Uber Technologies i.e., Uber Technologies and LOCKHEED go up and down completely randomly.

Pair Corralation between Uber Technologies and LOCKHEED

Given the investment horizon of 90 days Uber Technologies is expected to under-perform the LOCKHEED. In addition to that, Uber Technologies is 4.27 times more volatile than LOCKHEED MARTIN P. It trades about -0.26 of its total potential returns per unit of risk. LOCKHEED MARTIN P is currently generating about -0.09 per unit of volatility. If you would invest  10,896  in LOCKHEED MARTIN P on September 15, 2024 and sell it today you would lose (134.00) from holding LOCKHEED MARTIN P or give up 1.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	90.48%
Values	Daily Returns

Uber Technologies  vs.  LOCKHEED MARTIN P

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 unfluctuating 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.

LOCKHEED MARTIN P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LOCKHEED MARTIN P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for LOCKHEED MARTIN P investors.

Pair Trading with Uber Technologies and LOCKHEED

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

The idea behind Uber Technologies and LOCKHEED MARTIN P 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.