Correlation Between Ubisoft Entertainment and FS KKR
Can any of the company-specific risk be diversified away by investing in both Ubisoft Entertainment and FS KKR 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 FS KKR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubisoft Entertainment and FS KKR Capital, you can compare the effects of market volatilities on Ubisoft Entertainment and FS KKR 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 FS KKR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubisoft Entertainment and FS KKR.
Diversification Opportunities for Ubisoft Entertainment and FS KKR
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ubisoft and FSK is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ubisoft Entertainment and FS KKR Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS KKR Capital 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 FS KKR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS KKR Capital has no effect on the direction of Ubisoft Entertainment i.e., Ubisoft Entertainment and FS KKR go up and down completely randomly.
Pair Corralation between Ubisoft Entertainment and FS KKR
Assuming the 90 days horizon Ubisoft Entertainment is expected to under-perform the FS KKR. In addition to that, Ubisoft Entertainment is 4.47 times more volatile than FS KKR Capital. It trades about -0.04 of its total potential returns per unit of risk. FS KKR Capital is currently generating about 0.13 per unit of volatility. 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 | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ubisoft Entertainment vs. FS KKR Capital
Performance |
| Timeline |
| Ubisoft Entertainment |
| FS KKR Capital |
Ubisoft Entertainment and FS KKR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubisoft Entertainment and FS KKR
The main advantage of trading using opposite Ubisoft Entertainment and FS KKR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubisoft Entertainment position performs unexpectedly, FS KKR 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 FS KKR will offset losses from the drop in FS KKR's long position.| Ubisoft Entertainment vs. Capcom Co Ltd | Ubisoft Entertainment vs. CD Projekt SA | Ubisoft Entertainment vs. Sega Sammy Holdings | Ubisoft Entertainment vs. Playtika Holding Corp |
| FS KKR vs. BlackRock TCP Capital | FS KKR vs. Triplepoint Venture Growth | FS KKR vs. Sixth Street Specialty | FS KKR vs. Golub Capital BDC |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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