Correlation Between Sega Sammy and Appian Corp

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

Diversification Opportunities for Sega Sammy and Appian Corp

-0.42
  Correlation Coefficient

Very good diversification

The 3 months correlation between SGAMF and Appian is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sega Sammy Holdings and Appian Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appian Corp 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 Appian Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appian Corp has no effect on the direction of Sega Sammy i.e., Sega Sammy and Appian Corp go up and down completely randomly.

Pair Corralation between Sega Sammy and Appian Corp

If you would invest  1,691  in Sega Sammy Holdings on September 4, 2022 and sell it today you would earn a total of  0.00  from holding Sega Sammy Holdings or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Sega Sammy Holdings  vs.  Appian Corp

 Performance (%) 
       Timeline  
Sega Sammy Holdings 
SGAMF Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Sega Sammy Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, Sega Sammy is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

SGAMF Price Channel

Appian Corp 
Appian Performance
0 of 100
Over the last 90 days Appian Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Appian Price Channel

Sega Sammy and Appian Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sega Sammy and Appian Corp

The main advantage of trading using opposite Sega Sammy and Appian Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sega Sammy position performs unexpectedly, Appian Corp 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 Appian Corp will offset losses from the drop in Appian Corp's long position.
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The idea behind Sega Sammy Holdings and Appian Corp 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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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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