Correlation Between 11 Bit and Ultimate Games
Can any of the company-specific risk be diversified away by investing in both 11 Bit and Ultimate Games 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 11 Bit and Ultimate Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 11 bit studios and Ultimate Games SA, you can compare the effects of market volatilities on 11 Bit and Ultimate Games 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 11 Bit with a short position of Ultimate Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of 11 Bit and Ultimate Games.
Diversification Opportunities for 11 Bit and Ultimate Games
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 11B and Ultimate is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding 11 bit studios and Ultimate Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultimate Games SA and 11 Bit 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 11 bit studios are associated (or correlated) with Ultimate Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultimate Games SA has no effect on the direction of 11 Bit i.e., 11 Bit and Ultimate Games go up and down completely randomly.
Pair Corralation between 11 Bit and Ultimate Games
Assuming the 90 days trading horizon 11 bit studios is expected to under-perform the Ultimate Games. In addition to that, 11 Bit is 2.34 times more volatile than Ultimate Games SA. It trades about -0.12 of its total potential returns per unit of risk. Ultimate Games SA is currently generating about -0.16 per unit of volatility. If you would invest 910.00 in Ultimate Games SA on August 26, 2024 and sell it today you would lose (26.00) from holding Ultimate Games SA or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
11 bit studios vs. Ultimate Games SA
Performance |
| Timeline |
| 11 bit studios |
| Ultimate Games SA |
11 Bit and Ultimate Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 11 Bit and Ultimate Games
The main advantage of trading using opposite 11 Bit and Ultimate Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 11 Bit position performs unexpectedly, Ultimate Games 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 Ultimate Games will offset losses from the drop in Ultimate Games' long position.The idea behind 11 bit studios and Ultimate Games SA 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.| Ultimate Games vs. CD PROJEKT SA | Ultimate Games vs. 11 bit studios | Ultimate Games vs. Movie Games SA | Ultimate Games vs. Gaming Factory SA |
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 the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |