Correlation Between Konami Holdings and Sega Sammy
Can any of the company-specific risk be diversified away by investing in both Konami Holdings 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 Konami Holdings and Sega Sammy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konami Holdings and Sega Sammy Holdings, you can compare the effects of market volatilities on Konami Holdings 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 Konami Holdings with a short position of Sega Sammy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konami Holdings and Sega Sammy.
Diversification Opportunities for Konami Holdings and Sega Sammy
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Konami and Sega is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Konami Holdings 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 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 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 Konami Holdings i.e., Konami Holdings and Sega Sammy go up and down completely randomly.
Pair Corralation between Konami Holdings and Sega Sammy
If you would invest 435.00 in Sega Sammy Holdings on November 2, 2024 and sell it today you would earn a total of 46.00 from holding Sega Sammy Holdings or generate 10.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.44% |
| Values | Daily Returns |
Konami Holdings vs. Sega Sammy Holdings
Performance |
| Timeline |
| Konami Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sega Sammy Holdings |
Konami Holdings and Sega Sammy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konami Holdings and Sega Sammy
The main advantage of trading using opposite Konami Holdings and Sega Sammy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konami Holdings 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.| Konami Holdings vs. Cheche Group Class | Konami Holdings vs. Neogen | Konami Holdings vs. CDW Corp | Konami Holdings vs. Zhihu Inc ADR |
| 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Directory Find actively traded commodities issued by global exchanges |