Correlation Between Konami Holdings and Leaf Mobile
Can any of the company-specific risk be diversified away by investing in both Konami Holdings and Leaf Mobile 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 Leaf Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konami Holdings and Leaf Mobile, you can compare the effects of market volatilities on Konami Holdings and Leaf Mobile 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 Leaf Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konami Holdings and Leaf Mobile.
Diversification Opportunities for Konami Holdings and Leaf Mobile
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Konami and Leaf is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Konami Holdings and Leaf Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaf Mobile 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 Leaf Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaf Mobile has no effect on the direction of Konami Holdings i.e., Konami Holdings and Leaf Mobile go up and down completely randomly.
Pair Corralation between Konami Holdings and Leaf Mobile
Assuming the 90 days horizon Konami Holdings is expected to generate 0.64 times more return on investment than Leaf Mobile. However, Konami Holdings is 1.56 times less risky than Leaf Mobile. It trades about 0.14 of its potential returns per unit of risk. Leaf Mobile is currently generating about 0.01 per unit of risk. If you would invest 2,962 in Konami Holdings on August 28, 2024 and sell it today you would earn a total of 1,812 from holding Konami Holdings or generate 61.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konami Holdings vs. Leaf Mobile
Performance |
| Timeline |
| Konami Holdings |
| Leaf Mobile |
Konami Holdings and Leaf Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konami Holdings and Leaf Mobile
The main advantage of trading using opposite Konami Holdings and Leaf Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konami Holdings position performs unexpectedly, Leaf Mobile 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 Leaf Mobile will offset losses from the drop in Leaf Mobile's 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 |
| Leaf Mobile vs. GDEV Inc | Leaf Mobile vs. Doubledown Interactive Co | Leaf Mobile vs. Playstudios | Leaf Mobile vs. SohuCom |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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