Correlation Between FuelCell Energy and Ubisoft Entertainment
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 94.12% |
Values | Daily Returns |
FuelCell Energy vs. Ubisoft Entertainment SA
Performance |
Timeline |
FuelCell Energy |
Ubisoft Entertainment |
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.FuelCell Energy vs. Delta Electronics Public | FuelCell Energy vs. Superior Plus Corp | FuelCell Energy vs. NMI Holdings | FuelCell Energy vs. SIVERS SEMICONDUCTORS AB |
Ubisoft Entertainment vs. Gaztransport Technigaz SA | Ubisoft Entertainment vs. APPLIED MATERIALS | Ubisoft Entertainment vs. Eagle Materials | Ubisoft Entertainment vs. NTG Nordic Transport |
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 |