Correlation Between Sciplay Corp and Sega Sammy

Can any of the company-specific risk be diversified away by investing in both Sciplay Corp and Sega Sammy 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 Sciplay Corp and Sega Sammy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sciplay Corp and Sega Sammy Holdings, you can compare the effects of market volatilities on Sciplay Corp and Sega Sammy 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 Sciplay Corp with a short position of Sega Sammy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sciplay Corp and Sega Sammy.

Diversification Opportunities for Sciplay Corp and Sega Sammy

-0.59

Correlation Coefficient

Sciplay Corp  Sega Sammy

Excellent diversification

The 3 months correlation between Sciplay and Sega is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sciplay Corp and Sega Sammy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sega Sammy Holdings and Sciplay Corp 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 Sciplay Corp are associated (or correlated) with Sega Sammy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sega Sammy Holdings has no effect on the direction of Sciplay Corp i.e., Sciplay Corp and Sega Sammy go up and down completely randomly.

Pair Corralation between Sciplay Corp and Sega Sammy

Given the investment horizon of 90 days Sciplay Corp is expected to generate 1.03 times more return on investment than Sega Sammy. However, Sciplay Corp is 1.03 times more volatile than Sega Sammy Holdings. It trades about 0.07 of its potential returns per unit of risk. Sega Sammy Holdings is currently generating about 0.02 per unit of risk. If you would invest  1,577  in Sciplay Corp on September 12, 2024 and sell it today you would earn a total of  372.00  from holding Sciplay Corp or generate 23.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	29.55%
Values	Daily Returns

Sciplay Corp  vs.  Sega Sammy Holdings

Sciplay Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sciplay Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Sciplay Corp is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Sega Sammy Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sega Sammy Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Sciplay Corp and Sega Sammy

The main advantage of trading using opposite Sciplay Corp and Sega Sammy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sciplay Corp position performs unexpectedly, Sega Sammy 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 Sega Sammy will offset losses from the drop in Sega Sammy's long position.

The idea behind Sciplay Corp and Sega Sammy Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.