Correlation Between Pekin Life and Konami Holdings
Can any of the company-specific risk be diversified away by investing in both Pekin Life and Konami Holdings 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 Pekin Life and Konami Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pekin Life Insurance and Konami Holdings, you can compare the effects of market volatilities on Pekin Life and Konami Holdings 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 Pekin Life with a short position of Konami Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and Konami Holdings.
Diversification Opportunities for Pekin Life and Konami Holdings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pekin and Konami is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and Konami Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konami Holdings and Pekin Life 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 Pekin Life Insurance are associated (or correlated) with Konami Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konami Holdings has no effect on the direction of Pekin Life i.e., Pekin Life and Konami Holdings go up and down completely randomly.
Pair Corralation between Pekin Life and Konami Holdings
Given the investment horizon of 90 days Pekin Life is expected to generate 168.81 times less return on investment than Konami Holdings. But when comparing it to its historical volatility, Pekin Life Insurance is 3.49 times less risky than Konami Holdings. It trades about 0.01 of its potential returns per unit of risk. Konami Holdings is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 4,632 in Konami Holdings on November 2, 2024 and sell it today you would earn a total of 856.00 from holding Konami Holdings or generate 18.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.62% |
| Values | Daily Returns |
Pekin Life Insurance vs. Konami Holdings
Performance |
| Timeline |
| Pekin Life Insurance |
| Konami Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pekin Life and Konami Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and Konami Holdings
The main advantage of trading using opposite Pekin Life and Konami Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, Konami Holdings 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 Konami Holdings will offset losses from the drop in Konami Holdings' long position.| Pekin Life vs. FG Annuities Life | Pekin Life vs. MetLife Preferred Stock | Pekin Life vs. Brighthouse Financial | Pekin Life vs. MetLife Preferred Stock |
| Konami Holdings vs. Cheche Group Class | Konami Holdings vs. Neogen | Konami Holdings vs. CDW Corp | Konami Holdings vs. Zhihu Inc ADR |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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