Correlation Between Ubisoft Entertainment and Samsung SDI
Can any of the company-specific risk be diversified away by investing in both Ubisoft Entertainment and Samsung SDI 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 Samsung SDI 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 Samsung SDI Co, you can compare the effects of market volatilities on Ubisoft Entertainment and Samsung SDI 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 Samsung SDI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubisoft Entertainment and Samsung SDI.
Diversification Opportunities for Ubisoft Entertainment and Samsung SDI
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ubisoft and Samsung is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ubisoft Entertainment SA and Samsung SDI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung SDI 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 Samsung SDI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung SDI has no effect on the direction of Ubisoft Entertainment i.e., Ubisoft Entertainment and Samsung SDI go up and down completely randomly.
Pair Corralation between Ubisoft Entertainment and Samsung SDI
Assuming the 90 days horizon Ubisoft Entertainment SA is expected to generate 0.68 times more return on investment than Samsung SDI. However, Ubisoft Entertainment SA is 1.47 times less risky than Samsung SDI. It trades about -0.16 of its potential returns per unit of risk. Samsung SDI Co is currently generating about -0.21 per unit of risk. If you would invest 1,351 in Ubisoft Entertainment SA on August 28, 2024 and sell it today you would lose (108.00) from holding Ubisoft Entertainment SA or give up 7.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubisoft Entertainment SA vs. Samsung SDI Co
Performance |
| Timeline |
| Ubisoft Entertainment |
| Samsung SDI |
Ubisoft Entertainment and Samsung SDI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubisoft Entertainment and Samsung SDI
The main advantage of trading using opposite Ubisoft Entertainment and Samsung SDI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubisoft Entertainment position performs unexpectedly, Samsung SDI 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 Samsung SDI will offset losses from the drop in Samsung SDI's long position.The idea behind Ubisoft Entertainment SA and Samsung SDI Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Samsung SDI vs. FORWARD AIR P | Samsung SDI vs. WIZZ AIR HLDGUNSPADR4 | Samsung SDI vs. Ubisoft Entertainment SA | Samsung SDI vs. SYSTEMAIR AB |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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