Correlation Between Konami Holdings and CD Projekt
Can any of the company-specific risk be diversified away by investing in both Konami Holdings and CD Projekt 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 CD Projekt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konami Holdings and CD Projekt SA, you can compare the effects of market volatilities on Konami Holdings and CD Projekt 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 CD Projekt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konami Holdings and CD Projekt.
Diversification Opportunities for Konami Holdings and CD Projekt
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Konami and OTGLF is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Konami Holdings and CD Projekt SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CD Projekt SA 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 CD Projekt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CD Projekt SA has no effect on the direction of Konami Holdings i.e., Konami Holdings and CD Projekt go up and down completely randomly.
Pair Corralation between Konami Holdings and CD Projekt
Assuming the 90 days horizon Konami Holdings is expected to generate 0.76 times more return on investment than CD Projekt. However, Konami Holdings is 1.32 times less risky than CD Projekt. It trades about 0.07 of its potential returns per unit of risk. CD Projekt SA is currently generating about 0.03 per unit of risk. If you would invest 2,201 in Konami Holdings on August 24, 2024 and sell it today you would earn a total of 2,115 from holding Konami Holdings or generate 96.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konami Holdings vs. CD Projekt SA
Performance |
| Timeline |
| Konami Holdings |
| CD Projekt SA |
Konami Holdings and CD Projekt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konami Holdings and CD Projekt
The main advantage of trading using opposite Konami Holdings and CD Projekt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konami Holdings position performs unexpectedly, CD Projekt 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 CD Projekt will offset losses from the drop in CD Projekt's long position.| Konami Holdings vs. GDEV Inc | Konami Holdings vs. Doubledown Interactive Co | Konami Holdings vs. Playstudios | Konami Holdings vs. SohuCom |
| CD Projekt vs. Square Enix Holdings | CD Projekt vs. Sega Sammy Holdings | CD Projekt vs. Capcom Co Ltd | CD Projekt vs. Embracer Group AB |
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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