Correlation Between Doubledown Interactive and Konami Holdings
Can any of the company-specific risk be diversified away by investing in both Doubledown Interactive 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 Doubledown Interactive and Konami Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubledown Interactive Co and Konami Holdings, you can compare the effects of market volatilities on Doubledown Interactive 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 Doubledown Interactive with a short position of Konami Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and Konami Holdings.
Diversification Opportunities for Doubledown Interactive and Konami Holdings
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Doubledown and Konami is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and Konami Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konami Holdings and Doubledown Interactive 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 Doubledown Interactive Co 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 Doubledown Interactive i.e., Doubledown Interactive and Konami Holdings go up and down completely randomly.
Pair Corralation between Doubledown Interactive and Konami Holdings
Considering the 90-day investment horizon Doubledown Interactive is expected to generate 1.03 times less return on investment than Konami Holdings. In addition to that, Doubledown Interactive is 1.8 times more volatile than Konami Holdings. It trades about 0.05 of its total potential returns per unit of risk. Konami Holdings is currently generating about 0.09 per unit of volatility. If you would invest 2,556 in Konami Holdings on August 28, 2024 and sell it today you would earn a total of 2,218 from holding Konami Holdings or generate 86.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Doubledown Interactive Co vs. Konami Holdings
Performance |
| Timeline |
| Doubledown Interactive |
| Konami Holdings |
Doubledown Interactive and Konami Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubledown Interactive and Konami Holdings
The main advantage of trading using opposite Doubledown Interactive and Konami Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive 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.| Doubledown Interactive vs. AEye Inc | Doubledown Interactive vs. Arqit Quantum Warrants | Doubledown Interactive vs. Xos Equity Warrants |
| Konami Holdings vs. NEXON Co | Konami Holdings vs. Sega Sammy Holdings | Konami Holdings vs. Capcom Co Ltd | Konami Holdings vs. CD Projekt SA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |