Correlation Between Capcom and SCREEN Holdings

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

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

Diversification Opportunities for Capcom and SCREEN Holdings

0.87

Correlation Coefficient

Capcom  SCREEN Holdings

Very poor diversification

The 3 months correlation between Capcom and SCREEN is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Capcom Co and SCREEN Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCREEN 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 SCREEN Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCREEN Holdings has no effect on the direction of Capcom i.e., Capcom and SCREEN Holdings go up and down completely randomly.

Pair Corralation between Capcom and SCREEN Holdings

If you would invest  7,566  in SCREEN Holdings Co on August 14, 2025 and sell it today you would earn a total of  0.00  from holding SCREEN Holdings Co or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	1.59%
Values	Daily Returns

Capcom Co  vs.  SCREEN Holdings Co

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 nearly stable technical and fundamental indicators, Capcom is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SCREEN Holdings

Risk-Adjusted Performance

Weakest

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

Pair Trading with Capcom and SCREEN Holdings

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

The idea behind Capcom Co and SCREEN Holdings 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.