Correlation Between Konan Technology and Hyundai Steel
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Hyundai Steel 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 Hyundai Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Hyundai Steel, you can compare the effects of market volatilities on Konan Technology and Hyundai Steel 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 Hyundai Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Hyundai Steel.
Diversification Opportunities for Konan Technology and Hyundai Steel
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Konan and Hyundai is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Hyundai Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Steel 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 Hyundai Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Steel has no effect on the direction of Konan Technology i.e., Konan Technology and Hyundai Steel go up and down completely randomly.
Pair Corralation between Konan Technology and Hyundai Steel
Assuming the 90 days trading horizon Konan Technology is expected to under-perform the Hyundai Steel. In addition to that, Konan Technology is 2.22 times more volatile than Hyundai Steel. It trades about -0.02 of its total potential returns per unit of risk. Hyundai Steel is currently generating about -0.02 per unit of volatility. If you would invest 3,261,779 in Hyundai Steel on November 2, 2024 and sell it today you would lose (916,779) from holding Hyundai Steel or give up 28.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konan Technology vs. Hyundai Steel
Performance |
| Timeline |
| Konan Technology |
| Hyundai Steel |
Konan Technology and Hyundai Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Hyundai Steel
The main advantage of trading using opposite Konan Technology and Hyundai Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Hyundai Steel 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 Hyundai Steel will offset losses from the drop in Hyundai Steel'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 |
| Hyundai Steel vs. Lotte Fine Chemical | Hyundai Steel vs. Kg Chemical | Hyundai Steel vs. Tae Kyung Chemical | Hyundai Steel vs. Adaptive Plasma Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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