Correlation Between Sungchang Autotech and Konan Technology
Can any of the company-specific risk be diversified away by investing in both Sungchang Autotech 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 Sungchang Autotech and Konan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungchang Autotech Co and Konan Technology, you can compare the effects of market volatilities on Sungchang Autotech 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 Sungchang Autotech with a short position of Konan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungchang Autotech and Konan Technology.
Diversification Opportunities for Sungchang Autotech and Konan Technology
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sungchang and Konan is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sungchang Autotech Co and Konan Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konan Technology and Sungchang Autotech 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 Sungchang Autotech 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 Sungchang Autotech i.e., Sungchang Autotech and Konan Technology go up and down completely randomly.
Pair Corralation between Sungchang Autotech and Konan Technology
Assuming the 90 days trading horizon Sungchang Autotech Co is expected to under-perform the Konan Technology. But the stock apears to be less risky and, when comparing its historical volatility, Sungchang Autotech Co is 2.8 times less risky than Konan Technology. The stock trades about -0.06 of its potential returns per unit of risk. The Konan Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,000,000 in Konan Technology on August 25, 2024 and sell it today you would earn a total of 1,070,000 from holding Konan Technology or generate 107.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sungchang Autotech Co vs. Konan Technology
Performance |
| Timeline |
| Sungchang Autotech |
| Konan Technology |
Sungchang Autotech and Konan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungchang Autotech and Konan Technology
The main advantage of trading using opposite Sungchang Autotech and Konan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungchang Autotech 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.| Sungchang Autotech vs. Busan Industrial Co | Sungchang Autotech vs. Busan Ind | Sungchang Autotech vs. Mirae Asset Daewoo | Sungchang Autotech vs. UNISEM Co |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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