Correlation Between Sega Sammy and UbiSoft Entertainment
Can any of the company-specific risk be diversified away by investing in both Sega Sammy 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 Sega Sammy and UbiSoft Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sega Sammy Holdings and UbiSoft Entertainment, you can compare the effects of market volatilities on Sega Sammy 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 Sega Sammy with a short position of UbiSoft Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sega Sammy and UbiSoft Entertainment.
Diversification Opportunities for Sega Sammy and UbiSoft Entertainment
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sega and UbiSoft is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sega Sammy Holdings and UbiSoft Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UbiSoft Entertainment and Sega Sammy 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 Sega Sammy 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 Sega Sammy i.e., Sega Sammy and UbiSoft Entertainment go up and down completely randomly.
Pair Corralation between Sega Sammy and UbiSoft Entertainment
Assuming the 90 days horizon Sega Sammy Holdings is expected to generate 0.8 times more return on investment than UbiSoft Entertainment. However, Sega Sammy Holdings is 1.26 times less risky than UbiSoft Entertainment. It trades about 0.03 of its potential returns per unit of risk. UbiSoft Entertainment is currently generating about -0.04 per unit of risk. If you would invest 326.00 in Sega Sammy Holdings on August 24, 2024 and sell it today you would earn a total of 95.00 from holding Sega Sammy Holdings or generate 29.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sega Sammy Holdings vs. UbiSoft Entertainment
Performance |
| Timeline |
| Sega Sammy Holdings |
| UbiSoft Entertainment |
Sega Sammy and UbiSoft Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sega Sammy and UbiSoft Entertainment
The main advantage of trading using opposite Sega Sammy and UbiSoft Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sega Sammy 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.| Sega Sammy vs. Nexon Co Ltd | Sega Sammy vs. Square Enix Holdings | Sega Sammy vs. Nintendo Co | Sega Sammy vs. Square Enix Holdings |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |