Correlation Between Ubisoft Entertainment and EHEALTH
Can any of the company-specific risk be diversified away by investing in both Ubisoft Entertainment and EHEALTH 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 EHEALTH 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 EHEALTH, you can compare the effects of market volatilities on Ubisoft Entertainment and EHEALTH 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 EHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubisoft Entertainment and EHEALTH.
Diversification Opportunities for Ubisoft Entertainment and EHEALTH
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ubisoft and EHEALTH is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ubisoft Entertainment SA and EHEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EHEALTH 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 EHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EHEALTH has no effect on the direction of Ubisoft Entertainment i.e., Ubisoft Entertainment and EHEALTH go up and down completely randomly.
Pair Corralation between Ubisoft Entertainment and EHEALTH
Assuming the 90 days horizon Ubisoft Entertainment SA is expected to under-perform the EHEALTH. But the stock apears to be less risky and, when comparing its historical volatility, Ubisoft Entertainment SA is 1.24 times less risky than EHEALTH. The stock trades about -0.06 of its potential returns per unit of risk. The EHEALTH is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 754.00 in EHEALTH on September 4, 2024 and sell it today you would lose (217.00) from holding EHEALTH or give up 28.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ubisoft Entertainment SA vs. EHEALTH
Performance |
| Timeline |
| Ubisoft Entertainment |
| EHEALTH |
Ubisoft Entertainment and EHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubisoft Entertainment and EHEALTH
The main advantage of trading using opposite Ubisoft Entertainment and EHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubisoft Entertainment position performs unexpectedly, EHEALTH 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 EHEALTH will offset losses from the drop in EHEALTH's long position.| Ubisoft Entertainment vs. VULCAN MATERIALS | Ubisoft Entertainment vs. Compagnie Plastic Omnium | Ubisoft Entertainment vs. GOODYEAR T RUBBER | Ubisoft Entertainment vs. Lendlease Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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