Correlation Between Activision Blizzard and Mixi
Can any of the company-specific risk be diversified away by investing in both Activision Blizzard and Mixi 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 Activision Blizzard and Mixi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Activision Blizzard and Mixi Inc, you can compare the effects of market volatilities on Activision Blizzard and Mixi 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 Activision Blizzard with a short position of Mixi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Activision Blizzard and Mixi.
Diversification Opportunities for Activision Blizzard and Mixi
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Activision and Mixi is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Activision Blizzard and Mixi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mixi Inc and Activision Blizzard 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 Activision Blizzard are associated (or correlated) with Mixi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mixi Inc has no effect on the direction of Activision Blizzard i.e., Activision Blizzard and Mixi go up and down completely randomly.
Pair Corralation between Activision Blizzard and Mixi
If you would invest 1,692 in Mixi Inc on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Mixi Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Activision Blizzard vs. Mixi Inc
Performance |
| Timeline |
| Activision Blizzard |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mixi Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Activision Blizzard and Mixi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Activision Blizzard and Mixi
The main advantage of trading using opposite Activision Blizzard and Mixi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Activision Blizzard position performs unexpectedly, Mixi 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 Mixi will offset losses from the drop in Mixi's long position.| Activision Blizzard vs. Take Two Interactive Software | Activision Blizzard vs. Nintendo Co ADR | Activision Blizzard vs. NetEase | Activision Blizzard vs. Playtika Holding Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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