Correlation Between Konami Holdings and UbiSoft Entertainment
Can any of the company-specific risk be diversified away by investing in both Konami Holdings 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 Konami Holdings and UbiSoft Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konami Holdings and UbiSoft Entertainment, you can compare the effects of market volatilities on Konami Holdings 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 Konami Holdings with a short position of UbiSoft Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konami Holdings and UbiSoft Entertainment.
Diversification Opportunities for Konami Holdings and UbiSoft Entertainment
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Konami and UbiSoft is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Konami Holdings and UbiSoft Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UbiSoft Entertainment and Konami Holdings 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 Konami Holdings 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 Konami Holdings i.e., Konami Holdings and UbiSoft Entertainment go up and down completely randomly.
Pair Corralation between Konami Holdings and UbiSoft Entertainment
Assuming the 90 days horizon Konami Holdings is expected to generate 1.84 times more return on investment than UbiSoft Entertainment. However, Konami Holdings is 1.84 times more volatile than UbiSoft Entertainment. It trades about 0.35 of its potential returns per unit of risk. UbiSoft Entertainment is currently generating about -0.04 per unit of risk. If you would invest 4,460 in Konami Holdings on August 24, 2024 and sell it today you would earn a total of 1,028 from holding Konami Holdings or generate 23.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 2.22% |
| Values | Daily Returns |
Konami Holdings vs. UbiSoft Entertainment
Performance |
| Timeline |
| Konami Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| UbiSoft Entertainment |
Konami Holdings and UbiSoft Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konami Holdings and UbiSoft Entertainment
The main advantage of trading using opposite Konami Holdings and UbiSoft Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konami Holdings 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.| Konami Holdings vs. ArcelorMittal SA ADR | Konami Holdings vs. Radcom | Konami Holdings vs. Senmiao Technology | Konami Holdings vs. ServiceNow |
| UbiSoft Entertainment vs. GDEV Inc | UbiSoft Entertainment vs. Doubledown Interactive Co | UbiSoft Entertainment vs. Playstudios | UbiSoft Entertainment vs. SohuCom |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |