Correlation Between Konan Technology and Hanil Chemical
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Hanil Chemical 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 Hanil Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Hanil Chemical Ind, you can compare the effects of market volatilities on Konan Technology and Hanil Chemical 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 Hanil Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Hanil Chemical.
Diversification Opportunities for Konan Technology and Hanil Chemical
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Konan and Hanil is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Hanil Chemical Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanil Chemical Ind 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 Hanil Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanil Chemical Ind has no effect on the direction of Konan Technology i.e., Konan Technology and Hanil Chemical go up and down completely randomly.
Pair Corralation between Konan Technology and Hanil Chemical
Assuming the 90 days trading horizon Konan Technology is expected to generate 2.47 times more return on investment than Hanil Chemical. However, Konan Technology is 2.47 times more volatile than Hanil Chemical Ind. It trades about 0.09 of its potential returns per unit of risk. Hanil Chemical Ind is currently generating about -0.05 per unit of risk. If you would invest 1,489,000 in Konan Technology on November 2, 2024 and sell it today you would earn a total of 556,000 from holding Konan Technology or generate 37.34% 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. Hanil Chemical Ind
Performance |
| Timeline |
| Konan Technology |
| Hanil Chemical Ind |
Konan Technology and Hanil Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Hanil Chemical
The main advantage of trading using opposite Konan Technology and Hanil Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Hanil Chemical 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 Hanil Chemical will offset losses from the drop in Hanil Chemical's long position.| Konan Technology vs. LG Chemicals | Konan Technology vs. FOODWELL Co | Konan Technology vs. Korea Shipbuilding Offshore | Konan Technology vs. Sempio Foods Co |
| Hanil Chemical vs. Daejoo Electronic Materials | Hanil Chemical vs. Foodnamoo | Hanil Chemical vs. LAKE MATERIALS LTD | Hanil Chemical vs. National Plastic 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |