Correlation Between UbiSoft Entertainment and Glacier Media

Can any of the company-specific risk be diversified away by investing in both UbiSoft Entertainment and Glacier Media 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 Glacier Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UbiSoft Entertainment and Glacier Media, you can compare the effects of market volatilities on UbiSoft Entertainment and Glacier Media 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 Glacier Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of UbiSoft Entertainment and Glacier Media.

Diversification Opportunities for UbiSoft Entertainment and Glacier Media

-0.59

Correlation Coefficient

UbiSoft Entertainment  Glacier Media

Excellent diversification

The 3 months correlation between UbiSoft and Glacier is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding UbiSoft Entertainment and Glacier Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Media 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 are associated (or correlated) with Glacier Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glacier Media has no effect on the direction of UbiSoft Entertainment i.e., UbiSoft Entertainment and Glacier Media go up and down completely randomly.

Pair Corralation between UbiSoft Entertainment and Glacier Media

Assuming the 90 days horizon UbiSoft Entertainment is expected to generate 1.02 times more return on investment than Glacier Media. However, UbiSoft Entertainment is 1.02 times more volatile than Glacier Media. It trades about 0.05 of its potential returns per unit of risk. Glacier Media is currently generating about -0.22 per unit of risk. If you would invest  469.00  in UbiSoft Entertainment on March 4, 2024 and sell it today you would earn a total of  13.00  from holding UbiSoft Entertainment or generate 2.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

UbiSoft Entertainment  vs.  Glacier Media

UbiSoft Entertainment

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in UbiSoft Entertainment are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, UbiSoft Entertainment may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Glacier Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glacier Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in July 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with UbiSoft Entertainment and Glacier Media

The main advantage of trading using opposite UbiSoft Entertainment and Glacier Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UbiSoft Entertainment position performs unexpectedly, Glacier Media 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 Glacier Media will offset losses from the drop in Glacier Media's long position.

The idea behind UbiSoft Entertainment and Glacier Media 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.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.