Correlation Between Hwangkum Steel and Konan Technology
Can any of the company-specific risk be diversified away by investing in both Hwangkum Steel 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 Hwangkum Steel and Konan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hwangkum Steel Technology and Konan Technology, you can compare the effects of market volatilities on Hwangkum Steel 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 Hwangkum Steel with a short position of Konan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hwangkum Steel and Konan Technology.
Diversification Opportunities for Hwangkum Steel and Konan Technology
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hwangkum and Konan is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hwangkum Steel Technology and Konan Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konan Technology and Hwangkum Steel 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 Hwangkum Steel Technology 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 Hwangkum Steel i.e., Hwangkum Steel and Konan Technology go up and down completely randomly.
Pair Corralation between Hwangkum Steel and Konan Technology
Assuming the 90 days trading horizon Hwangkum Steel Technology is expected to under-perform the Konan Technology. But the stock apears to be less risky and, when comparing its historical volatility, Hwangkum Steel Technology is 3.11 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 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,095,000 in Konan Technology on September 2, 2024 and sell it today you would lose (585,000) from holding Konan Technology or give up 18.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hwangkum Steel Technology vs. Konan Technology
Performance |
| Timeline |
| Hwangkum Steel Technology |
| Konan Technology |
Hwangkum Steel and Konan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hwangkum Steel and Konan Technology
The main advantage of trading using opposite Hwangkum Steel and Konan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hwangkum Steel 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.| Hwangkum Steel vs. AptaBio Therapeutics | Hwangkum Steel vs. Daewoo SBI SPAC | Hwangkum Steel vs. Dream Security co | Hwangkum Steel 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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