Correlation Between Sega Sammy and IGG
Can any of the company-specific risk be diversified away by investing in both Sega Sammy and IGG 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 Sega Sammy and IGG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sega Sammy Holdings and IGG Inc, you can compare the effects of market volatilities on Sega Sammy and IGG 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 Sega Sammy with a short position of IGG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sega Sammy and IGG.
Diversification Opportunities for Sega Sammy and IGG
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sega and IGG is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sega Sammy Holdings and IGG Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGG Inc and Sega Sammy 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 Sega Sammy Holdings are associated (or correlated) with IGG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGG Inc has no effect on the direction of Sega Sammy i.e., Sega Sammy and IGG go up and down completely randomly.
Pair Corralation between Sega Sammy and IGG
Assuming the 90 days horizon Sega Sammy Holdings is expected to under-perform the IGG. In addition to that, Sega Sammy is 1.35 times more volatile than IGG Inc. It trades about -0.21 of its total potential returns per unit of risk. IGG Inc is currently generating about -0.21 per unit of volatility. If you would invest 53.00 in IGG Inc on September 1, 2024 and sell it today you would lose (5.00) from holding IGG Inc or give up 9.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sega Sammy Holdings vs. IGG Inc
Performance |
| Timeline |
| Sega Sammy Holdings |
| IGG Inc |
Sega Sammy and IGG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sega Sammy and IGG
The main advantage of trading using opposite Sega Sammy and IGG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sega Sammy position performs unexpectedly, IGG 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 IGG will offset losses from the drop in IGG's long position.| Sega Sammy vs. Nexon Co Ltd | Sega Sammy vs. Square Enix Holdings | Sega Sammy vs. Nintendo Co | Sega Sammy vs. Square Enix Holdings |
| IGG vs. CD Projekt SA | IGG vs. Sega Sammy Holdings | IGG vs. Playtika Holding Corp | IGG vs. Square Enix Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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