Correlation Between Ubisoft Entertainment and Atos SE
Can any of the company-specific risk be diversified away by investing in both Ubisoft Entertainment and Atos SE 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 Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubisoft Entertainment and Atos SE, you can compare the effects of market volatilities on Ubisoft Entertainment and Atos SE 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 Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubisoft Entertainment and Atos SE.
Diversification Opportunities for Ubisoft Entertainment and Atos SE
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ubisoft and Atos is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ubisoft Entertainment and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE 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 Atos SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos SE has no effect on the direction of Ubisoft Entertainment i.e., Ubisoft Entertainment and Atos SE go up and down completely randomly.
Pair Corralation between Ubisoft Entertainment and Atos SE
Assuming the 90 days trading horizon Ubisoft Entertainment is expected to under-perform the Atos SE. But the stock apears to be less risky and, when comparing its historical volatility, Ubisoft Entertainment is 86.73 times less risky than Atos SE. The stock trades about -0.17 of its potential returns per unit of risk. The Atos SE is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 0.53 in Atos SE on August 24, 2024 and sell it today you would earn a total of 15.47 from holding Atos SE or generate 2918.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubisoft Entertainment vs. Atos SE
Performance |
| Timeline |
| Ubisoft Entertainment |
| Atos SE |
Ubisoft Entertainment and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubisoft Entertainment and Atos SE
The main advantage of trading using opposite Ubisoft Entertainment and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubisoft Entertainment position performs unexpectedly, Atos SE 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 Atos SE will offset losses from the drop in Atos SE's long position.| Ubisoft Entertainment vs. Atos SE | Ubisoft Entertainment vs. Dassault Systemes SE | Ubisoft Entertainment vs. Vivendi SA | Ubisoft Entertainment vs. Alstom 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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