Correlation Between OURGAME INTHOLDL-00005 and Konica Minolta

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Can any of the company-specific risk be diversified away by investing in both OURGAME INTHOLDL-00005 and Konica Minolta 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 OURGAME INTHOLDL-00005 and Konica Minolta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OURGAME INTHOLDL 00005 and Konica Minolta, you can compare the effects of market volatilities on OURGAME INTHOLDL-00005 and Konica Minolta 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 OURGAME INTHOLDL-00005 with a short position of Konica Minolta. Check out your portfolio center. Please also check ongoing floating volatility patterns of OURGAME INTHOLDL-00005 and Konica Minolta.

Diversification Opportunities for OURGAME INTHOLDL-00005 and Konica Minolta

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between OURGAME and Konica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OURGAME INTHOLDL 00005 and Konica Minolta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konica Minolta and OURGAME INTHOLDL-00005 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 OURGAME INTHOLDL 00005 are associated (or correlated) with Konica Minolta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konica Minolta has no effect on the direction of OURGAME INTHOLDL-00005 i.e., OURGAME INTHOLDL-00005 and Konica Minolta go up and down completely randomly.

Pair Corralation between OURGAME INTHOLDL-00005 and Konica Minolta

Assuming the 90 days horizon OURGAME INTHOLDL 00005 is expected to generate 4.04 times more return on investment than Konica Minolta. However, OURGAME INTHOLDL-00005 is 4.04 times more volatile than Konica Minolta. It trades about 0.04 of its potential returns per unit of risk. Konica Minolta is currently generating about 0.07 per unit of risk. If you would invest  1.50  in OURGAME INTHOLDL 00005 on September 14, 2024 and sell it today you would earn a total of  0.10  from holding OURGAME INTHOLDL 00005 or generate 6.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy99.63%
ValuesDaily Returns

OURGAME INTHOLDL 00005  vs.  Konica Minolta

 Performance 
       Timeline  
OURGAME INTHOLDL 00005 

Risk-Adjusted Performance

0 of 100

 
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Very Weak
Over the last 90 days OURGAME INTHOLDL 00005 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, OURGAME INTHOLDL-00005 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
Konica Minolta 

Risk-Adjusted Performance

26 of 100

 
Weak
 
Strong
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Konica Minolta are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Konica Minolta reported solid returns over the last few months and may actually be approaching a breakup point.

OURGAME INTHOLDL-00005 and Konica Minolta Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with OURGAME INTHOLDL-00005 and Konica Minolta

The main advantage of trading using opposite OURGAME INTHOLDL-00005 and Konica Minolta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OURGAME INTHOLDL-00005 position performs unexpectedly, Konica Minolta 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 Konica Minolta will offset losses from the drop in Konica Minolta's long position.
The idea behind OURGAME INTHOLDL 00005 and Konica Minolta 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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