Correlation Between Capcom Co and Capcom

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

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

Diversification Opportunities for Capcom Co and Capcom

0.41

Correlation Coefficient

Capcom Co  Capcom

Very weak diversification

The 3 months correlation between Capcom and Capcom is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Capcom Co Ltd and Capcom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capcom and Capcom Co 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 Ltd are associated (or correlated) with Capcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capcom has no effect on the direction of Capcom Co i.e., Capcom Co and Capcom go up and down completely randomly.

Pair Corralation between Capcom Co and Capcom

Assuming the 90 days horizon Capcom Co Ltd is expected to generate 0.95 times more return on investment than Capcom. However, Capcom Co Ltd is 1.06 times less risky than Capcom. It trades about 0.08 of its potential returns per unit of risk. Capcom Co is currently generating about 0.06 per unit of risk. If you would invest  1,372  in Capcom Co Ltd on April 22, 2025 and sell it today you would earn a total of  128.00  from holding Capcom Co Ltd or generate 9.33% return on investment over 90 days.

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

Capcom Co Ltd  vs.  Capcom Co

Capcom Co

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Capcom Co Ltd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Capcom Co may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Capcom

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Capcom Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Capcom may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Capcom Co and Capcom

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

The idea behind Capcom Co Ltd and Capcom 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.