Correlation Between Ubisoft Entertainment and Atari SA
Can any of the company-specific risk be diversified away by investing in both Ubisoft Entertainment and Atari SA 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 Ubisoft Entertainment and Atari SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubisoft Entertainment and Atari SA, you can compare the effects of market volatilities on Ubisoft Entertainment and Atari SA 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 Ubisoft Entertainment with a short position of Atari SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubisoft Entertainment and Atari SA.
Diversification Opportunities for Ubisoft Entertainment and Atari SA
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ubisoft and Atari is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ubisoft Entertainment and Atari SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atari SA and Ubisoft Entertainment 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 Ubisoft Entertainment are associated (or correlated) with Atari SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atari SA has no effect on the direction of Ubisoft Entertainment i.e., Ubisoft Entertainment and Atari SA go up and down completely randomly.
Pair Corralation between Ubisoft Entertainment and Atari SA
Assuming the 90 days trading horizon Ubisoft Entertainment is expected to under-perform the Atari SA. But the stock apears to be less risky and, when comparing its historical volatility, Ubisoft Entertainment is 1.06 times less risky than Atari SA. The stock trades about -0.03 of its potential returns per unit of risk. The Atari SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Atari SA on September 3, 2024 and sell it today you would lose (8.00) from holding Atari SA or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubisoft Entertainment vs. Atari SA
Performance |
| Timeline |
| Ubisoft Entertainment |
| Atari SA |
Ubisoft Entertainment and Atari SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubisoft Entertainment and Atari SA
The main advantage of trading using opposite Ubisoft Entertainment and Atari SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubisoft Entertainment position performs unexpectedly, Atari SA 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 Atari SA will offset losses from the drop in Atari SA's long position.| Ubisoft Entertainment vs. Atos SE | Ubisoft Entertainment vs. Dassault Systemes SE | Ubisoft Entertainment vs. Vivendi SA | Ubisoft Entertainment vs. Alstom SA |
| Atari SA vs. Nacon Sa | Atari SA vs. Solutions 30 SE | Atari SA vs. OVH Groupe SAS | Atari SA vs. GECI International SA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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