Correlation Between Ilji Technology and Konan Technology
Can any of the company-specific risk be diversified away by investing in both Ilji Technology and Konan Technology 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 Ilji Technology and Konan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ilji Technology Co and Konan Technology, you can compare the effects of market volatilities on Ilji Technology and Konan Technology 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 Ilji Technology with a short position of Konan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and Konan Technology.
Diversification Opportunities for Ilji Technology and Konan Technology
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ilji and Konan is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology Co and Konan Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konan Technology and Ilji Technology 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 Ilji Technology Co are associated (or correlated) with Konan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konan Technology has no effect on the direction of Ilji Technology i.e., Ilji Technology and Konan Technology go up and down completely randomly.
Pair Corralation between Ilji Technology and Konan Technology
Assuming the 90 days trading horizon Ilji Technology Co is expected to under-perform the Konan Technology. But the stock apears to be less risky and, when comparing its historical volatility, Ilji Technology Co is 2.78 times less risky than Konan Technology. The stock trades about -0.1 of its potential returns per unit of risk. The Konan Technology is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,400,000 in Konan Technology on August 25, 2024 and sell it today you would earn a total of 670,000 from holding Konan Technology or generate 47.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ilji Technology Co vs. Konan Technology
Performance |
| Timeline |
| Ilji Technology |
| Konan Technology |
Ilji Technology and Konan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilji Technology and Konan Technology
The main advantage of trading using opposite Ilji Technology and Konan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology position performs unexpectedly, Konan Technology 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 Konan Technology will offset losses from the drop in Konan Technology's long position.The idea behind Ilji Technology Co and Konan Technology 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.
| Konan Technology vs. Posco ICT | Konan Technology vs. Devsisters corporation | Konan Technology vs. Alchera | Konan Technology vs. Nice Information Telecommunication |
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 the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |