Correlation Between AC SA and UF Games
Can any of the company-specific risk be diversified away by investing in both AC SA and UF 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 AC SA and UF Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AC SA and UF Games SA, you can compare the effects of market volatilities on AC SA and UF 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 AC SA with a short position of UF Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of AC SA and UF Games.
Diversification Opportunities for AC SA and UF Games
Good diversification
The 3 months correlation between ACG and UFG is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding AC SA and UF Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UF Games SA and AC SA 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 AC SA are associated (or correlated) with UF Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UF Games SA has no effect on the direction of AC SA i.e., AC SA and UF Games go up and down completely randomly.
Pair Corralation between AC SA and UF Games
Assuming the 90 days trading horizon AC SA is expected to generate 0.52 times more return on investment than UF Games. However, AC SA is 1.94 times less risky than UF Games. It trades about 0.04 of its potential returns per unit of risk. UF Games SA is currently generating about -0.02 per unit of risk. If you would invest 2,459 in AC SA on August 26, 2024 and sell it today you would earn a total of 341.00 from holding AC SA or generate 13.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.85% |
| Values | Daily Returns |
AC SA vs. UF Games SA
Performance |
| Timeline |
| AC SA |
| UF Games SA |
AC SA and UF Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AC SA and UF Games
The main advantage of trading using opposite AC SA and UF Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AC SA position performs unexpectedly, UF 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 UF Games will offset losses from the drop in UF Games' long position.| AC SA vs. UF Games SA | AC SA vs. Pixel Crow Games | AC SA vs. Varsav Game Studios | AC SA vs. Pyramid Games SA |
| UF Games vs. Road Studio SA | UF Games vs. UniCredit SpA | UF Games vs. LSI Software SA | UF Games vs. Centrum Finansowe Banku |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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