Correlation Between Sega Sammy and Doubledown Interactive

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

Diversification Opportunities for Sega Sammy and Doubledown Interactive

-0.19

Correlation Coefficient

Sega Sammy  Doubledown Interactive

Good diversification

The 3 months correlation between Sega and Doubledown is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sega Sammy Holdings and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Sega Sammy i.e., Sega Sammy and Doubledown Interactive go up and down completely randomly.

Pair Corralation between Sega Sammy and Doubledown Interactive

Assuming the 90 days horizon Sega Sammy Holdings is expected to generate 0.83 times more return on investment than Doubledown Interactive. However, Sega Sammy Holdings is 1.21 times less risky than Doubledown Interactive. It trades about 0.0 of its potential returns per unit of risk. Doubledown Interactive Co is currently generating about -0.02 per unit of risk. If you would invest  489.00  in Sega Sammy Holdings on December 29, 2024 and sell it today you would lose (6.00) from holding Sega Sammy Holdings or give up 1.23% of portfolio value over 90 days.

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

Sega Sammy Holdings  vs.  Doubledown Interactive Co

Sega Sammy Holdings

Risk-Adjusted Performance

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 fairly strong primary indicators, Sega Sammy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Doubledown Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Doubledown Interactive Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Doubledown Interactive is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Sega Sammy and Doubledown Interactive

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

The idea behind Sega Sammy Holdings and Doubledown Interactive Co 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.