Correlation Between SV Investment and Konan Technology
Can any of the company-specific risk be diversified away by investing in both SV Investment 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 SV Investment and Konan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SV Investment and Konan Technology, you can compare the effects of market volatilities on SV Investment 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 SV Investment with a short position of Konan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SV Investment and Konan Technology.
Diversification Opportunities for SV Investment and Konan Technology
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 289080 and Konan is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SV Investment and Konan Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konan Technology and SV Investment 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 SV Investment 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 SV Investment i.e., SV Investment and Konan Technology go up and down completely randomly.
Pair Corralation between SV Investment and Konan Technology
Assuming the 90 days trading horizon SV Investment is expected to generate 0.63 times more return on investment than Konan Technology. However, SV Investment is 1.6 times less risky than Konan Technology. It trades about 0.28 of its potential returns per unit of risk. Konan Technology is currently generating about -0.07 per unit of risk. If you would invest 129,400 in SV Investment on November 29, 2024 and sell it today you would earn a total of 16,400 from holding SV Investment or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SV Investment vs. Konan Technology
Performance |
| Timeline |
| SV Investment |
| Konan Technology |
SV Investment and Konan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SV Investment and Konan Technology
The main advantage of trading using opposite SV Investment and Konan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SV Investment 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.| SV Investment vs. Samhyun Steel Co | SV Investment vs. Dongil Steel Co | SV Investment vs. Husteel | SV Investment vs. Echomarketing CoLtd |
| Konan Technology vs. Korea Industrial Co | Konan Technology vs. BGF Retail Co | Konan Technology vs. Jeju Beer Co | Konan Technology vs. Echomarketing CoLtd |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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