Correlation Between Leaf Mobile and Sega Sammy
Can any of the company-specific risk be diversified away by investing in both Leaf Mobile and Sega Sammy 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 Sega Sammy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leaf Mobile and Sega Sammy Holdings, you can compare the effects of market volatilities on Leaf Mobile and Sega Sammy 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 Sega Sammy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaf Mobile and Sega Sammy.
Diversification Opportunities for Leaf Mobile and Sega Sammy
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Leaf and Sega is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Leaf Mobile and Sega Sammy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sega Sammy 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 Sega Sammy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sega Sammy Holdings has no effect on the direction of Leaf Mobile i.e., Leaf Mobile and Sega Sammy go up and down completely randomly.
Pair Corralation between Leaf Mobile and Sega Sammy
Assuming the 90 days horizon Leaf Mobile is expected to under-perform the Sega Sammy. In addition to that, Leaf Mobile is 1.57 times more volatile than Sega Sammy Holdings. It trades about -0.17 of its total potential returns per unit of risk. Sega Sammy Holdings is currently generating about -0.21 per unit of volatility. If you would invest 477.00 in Sega Sammy Holdings on September 1, 2024 and sell it today you would lose (56.00) from holding Sega Sammy Holdings or give up 11.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leaf Mobile vs. Sega Sammy Holdings
Performance |
| Timeline |
| Leaf Mobile |
| Sega Sammy Holdings |
Leaf Mobile and Sega Sammy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaf Mobile and Sega Sammy
The main advantage of trading using opposite Leaf Mobile and Sega Sammy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaf Mobile position performs unexpectedly, Sega Sammy 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 Sega Sammy will offset losses from the drop in Sega Sammy's long position.The idea behind Leaf Mobile and Sega Sammy Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sega Sammy vs. Nexon Co Ltd | Sega Sammy vs. Square Enix Holdings | Sega Sammy vs. Nintendo Co | Sega Sammy 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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