Correlation Between Konan Technology and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Iljin Display 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 Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Iljin Display, you can compare the effects of market volatilities on Konan Technology and Iljin Display 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 Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Iljin Display.
Diversification Opportunities for Konan Technology and Iljin Display
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Konan and Iljin is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display 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 Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Konan Technology i.e., Konan Technology and Iljin Display go up and down completely randomly.
Pair Corralation between Konan Technology and Iljin Display
Assuming the 90 days trading horizon Konan Technology is expected to generate 6.14 times more return on investment than Iljin Display. However, Konan Technology is 6.14 times more volatile than Iljin Display. It trades about 0.38 of its potential returns per unit of risk. Iljin Display is currently generating about -0.2 per unit of risk. If you would invest 1,553,000 in Konan Technology on September 3, 2024 and sell it today you would earn a total of 957,000 from holding Konan Technology or generate 61.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konan Technology vs. Iljin Display
Performance |
| Timeline |
| Konan Technology |
| Iljin Display |
Konan Technology and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Iljin Display
The main advantage of trading using opposite Konan Technology and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| Konan Technology vs. Posco ICT | Konan Technology vs. Devsisters corporation | Konan Technology vs. Alchera | Konan Technology vs. Nice Information Telecommunication |
| Iljin Display vs. Hankook Steel Co | Iljin Display vs. Genie Music | Iljin Display vs. Korea Shipbuilding Offshore | Iljin Display vs. Hanil Iron Steel |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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