Correlation Between American Express and Uber Technologies,

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

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

Diversification Opportunities for American Express and Uber Technologies,

0.8

Correlation Coefficient

American Express  Uber Technologies,

Very poor diversification

The 3 months correlation between American and Uber is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Uber Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies, and American Express 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 American Express 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 American Express i.e., American Express and Uber Technologies, go up and down completely randomly.

Pair Corralation between American Express and Uber Technologies,

Assuming the 90 days trading horizon American Express is expected to generate 1.02 times less return on investment than Uber Technologies,. But when comparing it to its historical volatility, American Express is 1.49 times less risky than Uber Technologies,. It trades about 0.11 of its potential returns per unit of risk. Uber Technologies, is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  152,818  in Uber Technologies, on April 25, 2025 and sell it today you would earn a total of  14,102  from holding Uber Technologies, or generate 9.23% return on investment over 90 days.

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

American Express  vs.  Uber Technologies,

American Express

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in American Express are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, American Express may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Uber Technologies,

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Uber Technologies, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Uber Technologies, may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with American Express and Uber Technologies,

The main advantage of trading using opposite American Express and Uber Technologies, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express 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,'s long position.

The idea behind American Express 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.