Correlation Between Konami Holdings and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Konami Holdings and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konami Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on Konami Holdings and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konami Holdings and Dow Jones.
Diversification Opportunities for Konami Holdings and Dow Jones
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Konami and Dow is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Konami Holdings and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Konami Holdings i.e., Konami Holdings and Dow Jones go up and down completely randomly.
Pair Corralation between Konami Holdings and Dow Jones
Assuming the 90 days horizon Konami Holdings is expected to generate 2.55 times more return on investment than Dow Jones. However, Konami Holdings is 2.55 times more volatile than Dow Jones Industrial. It trades about 0.14 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.16 per unit of risk. If you would invest 3,425 in Konami Holdings on August 31, 2024 and sell it today you would earn a total of 1,293 from holding Konami Holdings or generate 37.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Konami Holdings vs. Dow Jones Industrial
Performance |
| Timeline |
Konami Holdings and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Konami Holdings
Pair trading matchups for Konami Holdings
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Konami Holdings and Dow Jones
The main advantage of trading using opposite Konami Holdings and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konami Holdings position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Konami Holdings vs. NEXON Co | Konami Holdings vs. Sega Sammy Holdings | Konami Holdings vs. Capcom Co Ltd | Konami Holdings vs. CD Projekt SA |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |