Correlation Between Capcom and Sega Sammy

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

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

Diversification Opportunities for Capcom and Sega Sammy

0.33

Correlation Coefficient

Capcom  Sega Sammy

Weak diversification

The 3 months correlation between Capcom and Sega is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Capcom Co 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 Capcom 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 Capcom Co 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 Capcom i.e., Capcom and Sega Sammy go up and down completely randomly.

Pair Corralation between Capcom and Sega Sammy

Assuming the 90 days horizon Capcom Co is expected to under-perform the Sega Sammy. But the pink sheet apears to be less risky and, when comparing its historical volatility, Capcom Co is 3.18 times less risky than Sega Sammy. The pink sheet trades about -0.28 of its potential returns per unit of risk. The Sega Sammy Holdings is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  593.00  in Sega Sammy Holdings on July 1, 2025 and sell it today you would lose (61.00) from holding Sega Sammy Holdings or give up 10.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Capcom Co  vs.  Sega Sammy Holdings

Capcom

Risk-Adjusted Performance

Weakest

Over the last 90 days Capcom Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in October 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Sega Sammy Holdings

Risk-Adjusted Performance

Weakest

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 latest weak performance, the Stock's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Capcom and Sega Sammy

The main advantage of trading using opposite Capcom and Sega Sammy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capcom 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 Capcom Co 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.