Correlation Between Konan Technology and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Samsung Electronics 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 Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Samsung Electronics Co, you can compare the effects of market volatilities on Konan Technology and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Samsung Electronics.
Diversification Opportunities for Konan Technology and Samsung Electronics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Konan and Samsung is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Konan Technology i.e., Konan Technology and Samsung Electronics go up and down completely randomly.
Pair Corralation between Konan Technology and Samsung Electronics
Assuming the 90 days trading horizon Konan Technology is expected to generate 3.2 times more return on investment than Samsung Electronics. However, Konan Technology is 3.2 times more volatile than Samsung Electronics Co. It trades about 0.06 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.0 per unit of risk. If you would invest 977,500 in Konan Technology on September 3, 2024 and sell it today you would earn a total of 1,532,500 from holding Konan Technology or generate 156.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Konan Technology vs. Samsung Electronics Co
Performance |
| Timeline |
| Konan Technology |
| Samsung Electronics |
Konan Technology and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Samsung Electronics
The main advantage of trading using opposite Konan Technology and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Konan Technology vs. Posco ICT | Konan Technology vs. Devsisters corporation | Konan Technology vs. Alchera | Konan Technology vs. Nice Information Telecommunication |
| Samsung Electronics vs. Hanjoo Light Metal | Samsung Electronics vs. Taeyang Metal Industrial | Samsung Electronics vs. Daejung Chemicals Metals | Samsung Electronics vs. Youngsin Metal Industrial |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |