Correlation Between Ubisoft Entertainment and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Ubisoft Entertainment and ANTA SPORTS 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 ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubisoft Entertainment SA and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Ubisoft Entertainment and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubisoft Entertainment and ANTA SPORTS.
Diversification Opportunities for Ubisoft Entertainment and ANTA SPORTS
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ubisoft and ANTA is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ubisoft Entertainment SA and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 SA are associated (or correlated) with ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Ubisoft Entertainment i.e., Ubisoft Entertainment and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Ubisoft Entertainment and ANTA SPORTS
Assuming the 90 days horizon Ubisoft Entertainment SA is expected to under-perform the ANTA SPORTS. But the stock apears to be less risky and, when comparing its historical volatility, Ubisoft Entertainment SA is 1.09 times less risky than ANTA SPORTS. The stock trades about -0.27 of its potential returns per unit of risk. The ANTA SPORTS PRODUCT is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,012 in ANTA SPORTS PRODUCT on August 25, 2024 and sell it today you would lose (60.00) from holding ANTA SPORTS PRODUCT or give up 5.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ubisoft Entertainment SA vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Ubisoft Entertainment |
| ANTA SPORTS PRODUCT |
Ubisoft Entertainment and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubisoft Entertainment and ANTA SPORTS
The main advantage of trading using opposite Ubisoft Entertainment and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubisoft Entertainment position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| Ubisoft Entertainment vs. Sea Limited | Ubisoft Entertainment vs. NEXON Co | Ubisoft Entertainment vs. Take Two Interactive Software | Ubisoft Entertainment vs. Bilibili |
| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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