Correlation Between Konan Technology and Kiwoom
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Kiwoom 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 Kiwoom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Kiwoom, you can compare the effects of market volatilities on Konan Technology and Kiwoom 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 Kiwoom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Kiwoom.
Diversification Opportunities for Konan Technology and Kiwoom
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Konan and Kiwoom is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Kiwoom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiwoom 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 Kiwoom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiwoom has no effect on the direction of Konan Technology i.e., Konan Technology and Kiwoom go up and down completely randomly.
Pair Corralation between Konan Technology and Kiwoom
Assuming the 90 days trading horizon Konan Technology is expected to under-perform the Kiwoom. In addition to that, Konan Technology is 2.34 times more volatile than Kiwoom. It trades about -0.14 of its total potential returns per unit of risk. Kiwoom is currently generating about 0.42 per unit of volatility. If you would invest 11,240,000 in Kiwoom on November 2, 2024 and sell it today you would earn a total of 1,210,000 from holding Kiwoom or generate 10.77% 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. Kiwoom
Performance |
| Timeline |
| Konan Technology |
| Kiwoom |
Konan Technology and Kiwoom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Kiwoom
The main advantage of trading using opposite Konan Technology and Kiwoom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Kiwoom 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 Kiwoom will offset losses from the drop in Kiwoom'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 |
| Kiwoom vs. Sung Bo Chemicals | Kiwoom vs. Choil Aluminum | Kiwoom vs. Youngbo Chemical Co | Kiwoom vs. Duksan Hi Metal |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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