Correlation Between Hansol Homedeco and Konan Technology
Can any of the company-specific risk be diversified away by investing in both Hansol Homedeco 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 Hansol Homedeco and Konan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansol Homedeco Co and Konan Technology, you can compare the effects of market volatilities on Hansol Homedeco 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 Hansol Homedeco with a short position of Konan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansol Homedeco and Konan Technology.
Diversification Opportunities for Hansol Homedeco and Konan Technology
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hansol and Konan is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hansol Homedeco Co and Konan Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konan Technology and Hansol Homedeco 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 Hansol Homedeco 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 Hansol Homedeco i.e., Hansol Homedeco and Konan Technology go up and down completely randomly.
Pair Corralation between Hansol Homedeco and Konan Technology
Assuming the 90 days trading horizon Hansol Homedeco Co is expected to under-perform the Konan Technology. But the stock apears to be less risky and, when comparing its historical volatility, Hansol Homedeco Co is 2.94 times less risky than Konan Technology. The stock trades about -0.08 of its potential returns per unit of risk. The Konan Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,495,000 in Konan Technology on September 1, 2024 and sell it today you would lose (985,000) from holding Konan Technology or give up 28.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansol Homedeco Co vs. Konan Technology
Performance |
| Timeline |
| Hansol Homedeco |
| Konan Technology |
Hansol Homedeco and Konan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansol Homedeco and Konan Technology
The main advantage of trading using opposite Hansol Homedeco and Konan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansol Homedeco 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.| Hansol Homedeco vs. AptaBio Therapeutics | Hansol Homedeco vs. Daewoo SBI SPAC | Hansol Homedeco vs. Dream Security co | Hansol Homedeco vs. Microfriend |
| Konan Technology vs. Devsisters corporation | Konan Technology vs. Nice Information Telecommunication | Konan Technology vs. InfoBank |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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