Correlation Between Ubiquiti Networks and Electronic Arts
Can any of the company-specific risk be diversified away by investing in both Ubiquiti Networks and Electronic Arts 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 Ubiquiti Networks and Electronic Arts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubiquiti Networks and Electronic Arts, you can compare the effects of market volatilities on Ubiquiti Networks and Electronic Arts 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 Ubiquiti Networks with a short position of Electronic Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubiquiti Networks and Electronic Arts.
Diversification Opportunities for Ubiquiti Networks and Electronic Arts
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ubiquiti and Electronic is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ubiquiti Networks and Electronic Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Arts and Ubiquiti Networks 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 Ubiquiti Networks are associated (or correlated) with Electronic Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Arts has no effect on the direction of Ubiquiti Networks i.e., Ubiquiti Networks and Electronic Arts go up and down completely randomly.
Pair Corralation between Ubiquiti Networks and Electronic Arts
Allowing for the 90-day total investment horizon Ubiquiti Networks is expected to generate 22.23 times less return on investment than Electronic Arts. In addition to that, Ubiquiti Networks is 1.74 times more volatile than Electronic Arts. It trades about 0.0 of its total potential returns per unit of risk. Electronic Arts is currently generating about 0.16 per unit of volatility. If you would invest 16,790 in Electronic Arts on September 6, 2025 and sell it today you would earn a total of 3,554 from holding Electronic Arts or generate 21.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubiquiti Networks vs. Electronic Arts
Performance |
| Timeline |
| Ubiquiti Networks |
| Electronic Arts |
Ubiquiti Networks and Electronic Arts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubiquiti Networks and Electronic Arts
The main advantage of trading using opposite Ubiquiti Networks and Electronic Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubiquiti Networks position performs unexpectedly, Electronic Arts 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 Electronic Arts will offset losses from the drop in Electronic Arts' long position.| Ubiquiti Networks vs. Corsair Gaming | Ubiquiti Networks vs. Summit Bank Group | Ubiquiti Networks vs. Sinclair Broadcast Group | Ubiquiti Networks vs. Norwegian Air Shuttle |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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