Correlation Between IGG and Sega Sammy
Can any of the company-specific risk be diversified away by investing in both IGG 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 IGG and Sega Sammy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGG Inc and Sega Sammy Holdings, you can compare the effects of market volatilities on IGG 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 IGG with a short position of Sega Sammy. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGG and Sega Sammy.
Diversification Opportunities for IGG and Sega Sammy
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between IGG and Sega is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding IGG Inc 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 IGG 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 IGG Inc 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 IGG i.e., IGG and Sega Sammy go up and down completely randomly.
Pair Corralation between IGG and Sega Sammy
Assuming the 90 days horizon IGG Inc is expected to generate 0.74 times more return on investment than Sega Sammy. However, IGG Inc is 1.35 times less risky than Sega Sammy. It trades about -0.21 of its potential returns per unit of risk. Sega Sammy Holdings is currently generating about -0.21 per unit of risk. If you would invest 53.00 in IGG Inc on September 1, 2024 and sell it today you would lose (5.00) from holding IGG Inc or give up 9.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
IGG Inc vs. Sega Sammy Holdings
Performance |
| Timeline |
| IGG Inc |
| Sega Sammy Holdings |
IGG and Sega Sammy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGG and Sega Sammy
The main advantage of trading using opposite IGG and Sega Sammy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGG 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.| IGG vs. CD Projekt SA | IGG vs. Sega Sammy Holdings | IGG vs. Playtika Holding Corp | IGG vs. Square Enix Holdings |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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