Correlation Between Capcom Co and Konami Holdings
Can any of the company-specific risk be diversified away by investing in both Capcom Co and Konami Holdings 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 Konami Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capcom Co Ltd and Konami Holdings, you can compare the effects of market volatilities on Capcom Co and Konami Holdings 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 Konami Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capcom Co and Konami Holdings.
Diversification Opportunities for Capcom Co and Konami Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capcom and Konami is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capcom Co Ltd and Konami Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konami Holdings 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 Ltd are associated (or correlated) with Konami Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konami Holdings has no effect on the direction of Capcom Co i.e., Capcom Co and Konami Holdings go up and down completely randomly.
Pair Corralation between Capcom Co and Konami Holdings
If you would invest 1,254 in Capcom Co Ltd on December 30, 2024 and sell it today you would earn a total of 26.00 from holding Capcom Co Ltd or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Capcom Co Ltd vs. Konami Holdings
Performance |
| Timeline |
| Capcom Co |
| Konami Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Capcom Co and Konami Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capcom Co and Konami Holdings
The main advantage of trading using opposite Capcom Co and Konami Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capcom Co position performs unexpectedly, Konami Holdings 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 Konami Holdings will offset losses from the drop in Konami Holdings' long position.| Capcom Co vs. Square Enix Holdings | ||
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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 Stocks Directory module to find actively traded stocks across global markets.
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