Correlation Between Konan Technology and Yuhan
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Yuhan 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 Konan Technology and Yuhan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Yuhan, you can compare the effects of market volatilities on Konan Technology and Yuhan 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 Konan Technology with a short position of Yuhan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Yuhan.
Diversification Opportunities for Konan Technology and Yuhan
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Konan and Yuhan is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Yuhan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuhan and Konan Technology 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 Konan Technology are associated (or correlated) with Yuhan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuhan has no effect on the direction of Konan Technology i.e., Konan Technology and Yuhan go up and down completely randomly.
Pair Corralation between Konan Technology and Yuhan
Assuming the 90 days trading horizon Konan Technology is expected to under-perform the Yuhan. In addition to that, Konan Technology is 1.59 times more volatile than Yuhan. It trades about -0.02 of its total potential returns per unit of risk. Yuhan is currently generating about 0.08 per unit of volatility. If you would invest 4,980,952 in Yuhan on November 2, 2024 and sell it today you would earn a total of 8,009,048 from holding Yuhan or generate 160.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konan Technology vs. Yuhan
Performance |
| Timeline |
| Konan Technology |
| Yuhan |
Konan Technology and Yuhan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Yuhan
The main advantage of trading using opposite Konan Technology and Yuhan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Yuhan 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 Yuhan will offset losses from the drop in Yuhan's long position.| Konan Technology vs. Kbi Metal Co | Konan Technology vs. LG Household Healthcare | Konan Technology vs. Echomarketing CoLtd | Konan Technology vs. Inzi Display CoLtd |
| Yuhan vs. Dongil Metal Co | Yuhan vs. Heungkuk Metaltech CoLtd | Yuhan vs. Daishin Information Communications | Yuhan vs. SK Chemicals Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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