Correlation Between Konami Holdings and Mixi
Can any of the company-specific risk be diversified away by investing in both Konami Holdings and Mixi 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 Mixi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konami Holdings and Mixi Inc, you can compare the effects of market volatilities on Konami Holdings and Mixi 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 Mixi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konami Holdings and Mixi.
Diversification Opportunities for Konami Holdings and Mixi
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Konami and Mixi is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Konami Holdings and Mixi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mixi Inc 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 Mixi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mixi Inc has no effect on the direction of Konami Holdings i.e., Konami Holdings and Mixi go up and down completely randomly.
Pair Corralation between Konami Holdings and Mixi
If you would invest 4,316 in Konami Holdings on August 27, 2024 and sell it today you would earn a total of 458.00 from holding Konami Holdings or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Konami Holdings vs. Mixi Inc
Performance |
| Timeline |
| Konami Holdings |
| Mixi Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Konami Holdings and Mixi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konami Holdings and Mixi
The main advantage of trading using opposite Konami Holdings and Mixi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konami Holdings position performs unexpectedly, Mixi 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 Mixi will offset losses from the drop in Mixi's long position.| Konami Holdings vs. GDEV Inc | Konami Holdings vs. Doubledown Interactive Co | Konami Holdings vs. Playstudios | Konami Holdings 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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