Correlation Between American Express and UbiSoft Entertainment
Can any of the company-specific risk be diversified away by investing in both American Express and UbiSoft Entertainment 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 UbiSoft Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and UbiSoft Entertainment, you can compare the effects of market volatilities on American Express and UbiSoft Entertainment 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 UbiSoft Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and UbiSoft Entertainment.
Diversification Opportunities for American Express and UbiSoft Entertainment
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and UbiSoft is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding American Express and UbiSoft Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UbiSoft Entertainment 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 UbiSoft Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UbiSoft Entertainment has no effect on the direction of American Express i.e., American Express and UbiSoft Entertainment go up and down completely randomly.
Pair Corralation between American Express and UbiSoft Entertainment
Considering the 90-day investment horizon American Express is expected to generate 1.02 times more return on investment than UbiSoft Entertainment. However, American Express is 1.02 times more volatile than UbiSoft Entertainment. It trades about 0.25 of its potential returns per unit of risk. UbiSoft Entertainment is currently generating about -0.35 per unit of risk. If you would invest 27,408 in American Express on August 31, 2024 and sell it today you would earn a total of 3,017 from holding American Express or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. UbiSoft Entertainment
Performance |
| Timeline |
| American Express |
| UbiSoft Entertainment |
American Express and UbiSoft Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and UbiSoft Entertainment
The main advantage of trading using opposite American Express and UbiSoft Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, UbiSoft Entertainment 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 UbiSoft Entertainment will offset losses from the drop in UbiSoft Entertainment's long position.| American Express vs. Visa Class A | American Express vs. RLJ Lodging Trust | American Express vs. Aquagold International | American Express vs. Stepstone Group |
| UbiSoft Entertainment vs. Sega Sammy Holdings | UbiSoft Entertainment vs. Capcom Co Ltd | UbiSoft Entertainment vs. GDEV Inc | UbiSoft Entertainment vs. Square Enix Holdings |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |