Correlation Between FuelCell Energy and Ubisoft Entertainment

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

Diversification Opportunities for FuelCell Energy and Ubisoft Entertainment

-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between FuelCell and Ubisoft is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and Ubisoft Entertainment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubisoft Entertainment and FuelCell Energy 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 FuelCell Energy 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 FuelCell Energy i.e., FuelCell Energy and Ubisoft Entertainment go up and down completely randomly.

Pair Corralation between FuelCell Energy and Ubisoft Entertainment

Assuming the 90 days trading horizon FuelCell Energy is expected to generate 4.96 times more return on investment than Ubisoft Entertainment. However, FuelCell Energy is 4.96 times more volatile than Ubisoft Entertainment SA. It trades about 0.14 of its potential returns per unit of risk. Ubisoft Entertainment SA is currently generating about -0.07 per unit of risk. If you would invest  1,065  in FuelCell Energy on October 11, 2024 and sell it today you would earn a total of  157.00  from holding FuelCell Energy or generate 14.74% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy94.12%
ValuesDaily Returns

FuelCell Energy  vs.  Ubisoft Entertainment SA

 Performance 
       Timeline  
FuelCell Energy 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in FuelCell Energy are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FuelCell Energy reported solid returns over the last few months and may actually be approaching a breakup point.
Ubisoft Entertainment 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ubisoft Entertainment SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ubisoft Entertainment is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

FuelCell Energy and Ubisoft Entertainment Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FuelCell Energy and Ubisoft Entertainment

The main advantage of trading using opposite FuelCell Energy and Ubisoft Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelCell Energy 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.
The idea behind FuelCell Energy and Ubisoft Entertainment 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.
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

Other Complementary Tools

Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Commodity Directory
Find actively traded commodities issued by global exchanges