Correlation Between FS KKR and Ubisoft Entertainment
Can any of the company-specific risk be diversified away by investing in both FS KKR 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 FS KKR and Ubisoft Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FS KKR Capital and Ubisoft Entertainment, you can compare the effects of market volatilities on FS KKR 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 FS KKR with a short position of Ubisoft Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FS KKR and Ubisoft Entertainment.
Diversification Opportunities for FS KKR and Ubisoft Entertainment
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FSK and Ubisoft is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding FS KKR Capital and Ubisoft Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubisoft Entertainment and FS KKR 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 FS KKR Capital 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 FS KKR i.e., FS KKR and Ubisoft Entertainment go up and down completely randomly.
Pair Corralation between FS KKR and Ubisoft Entertainment
Considering the 90-day investment horizon FS KKR Capital is expected to generate 0.22 times more return on investment than Ubisoft Entertainment. However, FS KKR Capital is 4.47 times less risky than Ubisoft Entertainment. It trades about 0.13 of its potential returns per unit of risk. Ubisoft Entertainment is currently generating about -0.04 per unit of risk. If you would invest 1,736 in FS KKR Capital on November 3, 2024 and sell it today you would earn a total of 603.00 from holding FS KKR Capital or generate 34.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
FS KKR Capital vs. Ubisoft Entertainment
Performance |
| Timeline |
| FS KKR Capital |
| Ubisoft Entertainment |
FS KKR and Ubisoft Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FS KKR and Ubisoft Entertainment
The main advantage of trading using opposite FS KKR and Ubisoft Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FS KKR 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.| FS KKR vs. BlackRock TCP Capital | FS KKR vs. Triplepoint Venture Growth | FS KKR vs. Sixth Street Specialty | FS KKR vs. Golub Capital BDC |
| Ubisoft Entertainment vs. Capcom Co Ltd | Ubisoft Entertainment vs. CD Projekt SA | Ubisoft Entertainment vs. Sega Sammy Holdings | Ubisoft Entertainment vs. Playtika Holding Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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