Correlation Between Sega Sammy and I3 Interactive

Can any of the company-specific risk be diversified away by investing in both Sega Sammy and I3 Interactive 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 I3 Interactive 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 i3 Interactive, you can compare the effects of market volatilities on Sega Sammy and I3 Interactive 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 I3 Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sega Sammy and I3 Interactive.

Diversification Opportunities for Sega Sammy and I3 Interactive

0.0

Correlation Coefficient

Sega Sammy  I3 Interactive

Pay attention - limited upside

The 3 months correlation between Sega and BLITF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sega Sammy Holdings and i3 Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i3 Interactive 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 I3 Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i3 Interactive has no effect on the direction of Sega Sammy i.e., Sega Sammy and I3 Interactive go up and down completely randomly.

Pair Corralation between Sega Sammy and I3 Interactive

If you would invest  435.00  in Sega Sammy Holdings on December 1, 2024 and sell it today you would earn a total of  54.00  from holding Sega Sammy Holdings or generate 12.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sega Sammy Holdings  vs.  i3 Interactive

Sega Sammy Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sega Sammy Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Sega Sammy showed solid returns over the last few months and may actually be approaching a breakup point.

i3 Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days i3 Interactive has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, I3 Interactive is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Sega Sammy and I3 Interactive

The main advantage of trading using opposite Sega Sammy and I3 Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sega Sammy position performs unexpectedly, I3 Interactive 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 I3 Interactive will offset losses from the drop in I3 Interactive's long position.

The idea behind Sega Sammy Holdings and i3 Interactive 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.