Correlation Between Ubisoft Entertainment and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both Ubisoft Entertainment and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES 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 SINGAPORE AIRLINES, you can compare the effects of market volatilities on Ubisoft Entertainment and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubisoft Entertainment and SINGAPORE AIRLINES.
Diversification Opportunities for Ubisoft Entertainment and SINGAPORE AIRLINES
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ubisoft and SINGAPORE is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ubisoft Entertainment SA and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE AIRLINES has no effect on the direction of Ubisoft Entertainment i.e., Ubisoft Entertainment and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between Ubisoft Entertainment and SINGAPORE AIRLINES
Assuming the 90 days horizon Ubisoft Entertainment SA is expected to under-perform the SINGAPORE AIRLINES. In addition to that, Ubisoft Entertainment is 2.69 times more volatile than SINGAPORE AIRLINES. It trades about -0.06 of its total potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.01 per unit of volatility. If you would invest 439.00 in SINGAPORE AIRLINES on August 26, 2024 and sell it today you would earn a total of 5.00 from holding SINGAPORE AIRLINES or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubisoft Entertainment SA vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| Ubisoft Entertainment |
| SINGAPORE AIRLINES |
Ubisoft Entertainment and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubisoft Entertainment and SINGAPORE AIRLINES
The main advantage of trading using opposite Ubisoft Entertainment and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubisoft Entertainment position performs unexpectedly, SINGAPORE AIRLINES 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 SINGAPORE AIRLINES will offset losses from the drop in SINGAPORE AIRLINES's long position.| Ubisoft Entertainment vs. Sea Limited | Ubisoft Entertainment vs. NEXON Co | Ubisoft Entertainment vs. Take Two Interactive Software | Ubisoft Entertainment vs. Bilibili |
| SINGAPORE AIRLINES vs. Vastned Retail NV | SINGAPORE AIRLINES vs. The Trade Desk | SINGAPORE AIRLINES vs. FLOW TRADERS LTD | SINGAPORE AIRLINES vs. MINCO SILVER |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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