Correlation Between Datagroup and Ubisoft Entertainment

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

By analyzing existing cross correlation between Datagroup SE and Ubisoft Entertainment, you can compare the effects of market volatilities on Datagroup and Ubisoft Entertainment 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 Datagroup with a short position of Ubisoft Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datagroup and Ubisoft Entertainment.

Diversification Opportunities for Datagroup and Ubisoft Entertainment

-0.64

Correlation Coefficient

Datagroup  Ubisoft Entertainment

Excellent diversification

The 3 months correlation between Datagroup and Ubisoft is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Datagroup SE and Ubisoft Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubisoft Entertainment and Datagroup 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 Datagroup SE are associated (or correlated) with Ubisoft Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubisoft Entertainment has no effect on the direction of Datagroup i.e., Datagroup and Ubisoft Entertainment go up and down completely randomly.

Pair Corralation between Datagroup and Ubisoft Entertainment

Assuming the 90 days trading horizon Datagroup SE is expected to generate 0.28 times more return on investment than Ubisoft Entertainment. However, Datagroup SE is 3.56 times less risky than Ubisoft Entertainment. It trades about 0.19 of its potential returns per unit of risk. Ubisoft Entertainment is currently generating about -0.02 per unit of risk. If you would invest  5,470  in Datagroup SE on April 25, 2025 and sell it today you would earn a total of  670.00  from holding Datagroup SE or generate 12.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

Datagroup SE  vs.  Ubisoft Entertainment

Datagroup SE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Datagroup SE are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Datagroup may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Ubisoft Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ubisoft Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ubisoft Entertainment is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Datagroup and Ubisoft Entertainment

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

The idea behind Datagroup SE and Ubisoft Entertainment 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.

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.