Correlation Between Sega Sammy and Konami Holdings
Can any of the company-specific risk be diversified away by investing in both Sega Sammy 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 Sega Sammy and Konami Holdings 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 Konami Holdings, you can compare the effects of market volatilities on Sega Sammy 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 Sega Sammy with a short position of Konami Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sega Sammy and Konami Holdings.
Diversification Opportunities for Sega Sammy and Konami Holdings
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sega and Konami is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sega Sammy Holdings and Konami Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konami Holdings 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 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 Sega Sammy i.e., Sega Sammy and Konami Holdings go up and down completely randomly.
Pair Corralation between Sega Sammy and Konami Holdings
Assuming the 90 days horizon Sega Sammy is expected to generate 2.09 times less return on investment than Konami Holdings. In addition to that, Sega Sammy is 1.11 times more volatile than Konami Holdings. It trades about 0.03 of its total potential returns per unit of risk. Konami Holdings is currently generating about 0.08 per unit of volatility. If you would invest 2,221 in Konami Holdings on August 28, 2024 and sell it today you would earn a total of 2,553 from holding Konami Holdings or generate 114.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sega Sammy Holdings vs. Konami Holdings
Performance |
| Timeline |
| Sega Sammy Holdings |
| Konami Holdings |
Sega Sammy and Konami Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sega Sammy and Konami Holdings
The main advantage of trading using opposite Sega Sammy and Konami Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sega Sammy 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.| Sega Sammy vs. Nexon Co Ltd | Sega Sammy vs. Square Enix Holdings | Sega Sammy vs. Nintendo Co | Sega Sammy vs. Square Enix Holdings |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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