Correlation Between Konami Holdings and Nintendo
Can any of the company-specific risk be diversified away by investing in both Konami Holdings and Nintendo 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 Konami Holdings and Nintendo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konami Holdings and Nintendo Co ADR, you can compare the effects of market volatilities on Konami Holdings and Nintendo 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 Konami Holdings with a short position of Nintendo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konami Holdings and Nintendo.
Diversification Opportunities for Konami Holdings and Nintendo
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Konami and Nintendo is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Konami Holdings and Nintendo Co ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nintendo Co ADR and Konami Holdings 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 Konami Holdings are associated (or correlated) with Nintendo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nintendo Co ADR has no effect on the direction of Konami Holdings i.e., Konami Holdings and Nintendo go up and down completely randomly.
Pair Corralation between Konami Holdings and Nintendo
If you would invest 1,318 in Nintendo Co ADR on August 31, 2024 and sell it today you would earn a total of 147.00 from holding Nintendo Co ADR or generate 11.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Konami Holdings vs. Nintendo Co ADR
Performance |
| Timeline |
| Konami Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nintendo Co ADR |
Konami Holdings and Nintendo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konami Holdings and Nintendo
The main advantage of trading using opposite Konami Holdings and Nintendo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konami Holdings position performs unexpectedly, Nintendo 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 Nintendo will offset losses from the drop in Nintendo's long position.| Konami Holdings vs. Village Super Market | Konami Holdings vs. Park Hotels Resorts | Konami Holdings vs. Shake Shack | Konami Holdings vs. Celsius Holdings |
| Nintendo vs. Square Enix Holdings | Nintendo vs. Capcom Co Ltd | Nintendo vs. Electronic Arts | Nintendo vs. Roblox Corp |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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