Correlation Between Cuckoo Homesys and Konan Technology
Can any of the company-specific risk be diversified away by investing in both Cuckoo Homesys 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 Cuckoo Homesys and Konan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuckoo Homesys Co and Konan Technology, you can compare the effects of market volatilities on Cuckoo Homesys 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 Cuckoo Homesys with a short position of Konan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Homesys and Konan Technology.
Diversification Opportunities for Cuckoo Homesys and Konan Technology
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cuckoo and Konan is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Homesys Co and Konan Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konan Technology and Cuckoo Homesys 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 Cuckoo Homesys 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 Cuckoo Homesys i.e., Cuckoo Homesys and Konan Technology go up and down completely randomly.
Pair Corralation between Cuckoo Homesys and Konan Technology
Assuming the 90 days trading horizon Cuckoo Homesys Co is expected to generate 0.45 times more return on investment than Konan Technology. However, Cuckoo Homesys Co is 2.2 times less risky than Konan Technology. It trades about 0.01 of its potential returns per unit of risk. Konan Technology is currently generating about -0.01 per unit of risk. If you would invest 2,071,281 in Cuckoo Homesys Co on September 1, 2024 and sell it today you would earn a total of 3,719 from holding Cuckoo Homesys Co or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuckoo Homesys Co vs. Konan Technology
Performance |
| Timeline |
| Cuckoo Homesys |
| Konan Technology |
Cuckoo Homesys and Konan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Homesys and Konan Technology
The main advantage of trading using opposite Cuckoo Homesys and Konan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Homesys 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.| Cuckoo Homesys vs. Busan Industrial Co | Cuckoo Homesys vs. Busan Ind | Cuckoo Homesys vs. Mirae Asset Daewoo | Cuckoo Homesys vs. Finebesteel |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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