Correlation Between Capcom Co and Mixi
Can any of the company-specific risk be diversified away by investing in both Capcom Co 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 Capcom Co and Mixi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capcom Co and Mixi Inc, you can compare the effects of market volatilities on Capcom Co 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 Capcom Co with a short position of Mixi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capcom Co and Mixi.
Diversification Opportunities for Capcom Co and Mixi
Average diversification
The 3 months correlation between Capcom and Mixi is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Capcom Co and Mixi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mixi Inc and Capcom Co 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 Capcom Co 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 Capcom Co i.e., Capcom Co and Mixi go up and down completely randomly.
Pair Corralation between Capcom Co and Mixi
Assuming the 90 days horizon Capcom Co is expected to generate 5.96 times more return on investment than Mixi. However, Capcom Co is 5.96 times more volatile than Mixi Inc. It trades about 0.06 of its potential returns per unit of risk. Mixi Inc is currently generating about -0.05 per unit of risk. If you would invest 1,649 in Capcom Co on August 24, 2024 and sell it today you would earn a total of 405.00 from holding Capcom Co or generate 24.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.36% |
| Values | Daily Returns |
Capcom Co vs. Mixi Inc
Performance |
| Timeline |
| Capcom Co |
| Mixi Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Capcom Co and Mixi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capcom Co and Mixi
The main advantage of trading using opposite Capcom Co and Mixi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capcom Co 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.| Capcom Co vs. Square Enix Holdings | Capcom Co vs. CD Projekt SA | Capcom Co vs. Sega Sammy Holdings | Capcom Co vs. Square Enix Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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