Correlation Between Ultimate Games and Atlantis
Can any of the company-specific risk be diversified away by investing in both Ultimate Games and Atlantis 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 Ultimate Games and Atlantis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultimate Games SA and Atlantis SA, you can compare the effects of market volatilities on Ultimate Games and Atlantis 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 Ultimate Games with a short position of Atlantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimate Games and Atlantis.
Diversification Opportunities for Ultimate Games and Atlantis
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ultimate and Atlantis is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ultimate Games SA and Atlantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantis SA and Ultimate Games 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 Ultimate Games SA are associated (or correlated) with Atlantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantis SA has no effect on the direction of Ultimate Games i.e., Ultimate Games and Atlantis go up and down completely randomly.
Pair Corralation between Ultimate Games and Atlantis
Assuming the 90 days trading horizon Ultimate Games SA is expected to generate 0.4 times more return on investment than Atlantis. However, Ultimate Games SA is 2.48 times less risky than Atlantis. It trades about -0.04 of its potential returns per unit of risk. Atlantis SA is currently generating about -0.03 per unit of risk. If you would invest 1,539 in Ultimate Games SA on October 11, 2024 and sell it today you would lose (737.00) from holding Ultimate Games SA or give up 47.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.8% |
| Values | Daily Returns |
Ultimate Games SA vs. Atlantis SA
Performance |
| Timeline |
| Ultimate Games SA |
| Atlantis SA |
Ultimate Games and Atlantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultimate Games and Atlantis
The main advantage of trading using opposite Ultimate Games and Atlantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimate Games position performs unexpectedly, Atlantis 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 Atlantis will offset losses from the drop in Atlantis' long position.| Ultimate Games vs. UniCredit SpA | Ultimate Games vs. Monnari Trade SA | Ultimate Games vs. CI Games SA | Ultimate Games vs. Noble Financials SA |
| Atlantis vs. Echo Investment SA | Atlantis vs. GreenX Metals | Atlantis vs. Ultimate Games SA | Atlantis vs. Kool2play SA |
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 Stocks Directory module to find actively traded stocks across global markets.
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