Correlation Between Leaf Mobile and Konami Holdings
Can any of the company-specific risk be diversified away by investing in both Leaf Mobile 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 Leaf Mobile and Konami Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leaf Mobile and Konami Holdings, you can compare the effects of market volatilities on Leaf Mobile 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 Leaf Mobile with a short position of Konami Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaf Mobile and Konami Holdings.
Diversification Opportunities for Leaf Mobile and Konami Holdings
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Leaf and Konami is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Leaf Mobile and Konami Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konami Holdings and Leaf Mobile 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 Leaf Mobile 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 Leaf Mobile i.e., Leaf Mobile and Konami Holdings go up and down completely randomly.
Pair Corralation between Leaf Mobile and Konami Holdings
Assuming the 90 days horizon Leaf Mobile is expected to under-perform the Konami Holdings. In addition to that, Leaf Mobile is 1.44 times more volatile than Konami Holdings. It trades about -0.12 of its total potential returns per unit of risk. Konami Holdings is currently generating about 0.08 per unit of volatility. If you would invest 4,374 in Konami Holdings on August 28, 2024 and sell it today you would earn a total of 400.00 from holding Konami Holdings or generate 9.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leaf Mobile vs. Konami Holdings
Performance |
| Timeline |
| Leaf Mobile |
| Konami Holdings |
Leaf Mobile and Konami Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaf Mobile and Konami Holdings
The main advantage of trading using opposite Leaf Mobile and Konami Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaf Mobile 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.| Leaf Mobile vs. GDEV Inc | Leaf Mobile vs. Doubledown Interactive Co | Leaf Mobile vs. Playstudios | Leaf Mobile vs. SohuCom |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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