Correlation Between State Street and Uber Technologies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both State Street and Uber Technologies 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 State Street and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Corp and Uber Technologies, you can compare the effects of market volatilities on State Street and Uber Technologies 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 State Street with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Uber Technologies.

Diversification Opportunities for State Street and Uber Technologies

0.4
  Correlation Coefficient

Very weak diversification

The 3 months correlation between State and Uber Technologies is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding State Street Corp and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and State Street 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 State Street Corp are associated (or correlated) with Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of State Street i.e., State Street and Uber Technologies go up and down completely randomly.

Pair Corralation between State Street and Uber Technologies

Considering the 90-day investment horizon State Street Corp is expected to generate 0.62 times more return on investment than Uber Technologies. However, State Street Corp is 1.6 times less risky than Uber Technologies. It trades about 0.01 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.02 per unit of risk. If you would invest  7,653  in State Street Corp on August 28, 2022 and sell it today you would earn a total of  53.00  from holding State Street Corp or generate 0.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

State Street Corp  vs.  Uber Technologies

 Performance (%) 
       Timeline  
State Street Corp 
State Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in State Street Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, State Street unveiled solid returns over the last few months and may actually be approaching a breakup point.

State Price Channel

Uber Technologies 
Uber Technologies Performance
1 of 100
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 latest stock price agitation, may contribute to short-term losses for the retail investors.

Uber Technologies Price Channel

State Street and Uber Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with State Street and Uber Technologies

The main advantage of trading using opposite State Street and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.
State Street vs. Agnc Investment Corp
State Street vs. Ally Financial
State Street vs. American Express
State Street vs. Credicorp
The idea behind State Street Corp and Uber Technologies 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.
Uber Technologies vs. Servicenow
Uber Technologies vs. Intuit Inc
Uber Technologies vs. Autodesk
Uber Technologies vs. Snowflake Inc Cl
Check out your portfolio center. 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go