Correlation Between Konan Technology and Total Soft
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Total Soft 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 Total Soft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Total Soft Bank, you can compare the effects of market volatilities on Konan Technology and Total Soft 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 Total Soft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Total Soft.
Diversification Opportunities for Konan Technology and Total Soft
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Konan and Total is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Total Soft Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Soft Bank 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 Total Soft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Soft Bank has no effect on the direction of Konan Technology i.e., Konan Technology and Total Soft go up and down completely randomly.
Pair Corralation between Konan Technology and Total Soft
Assuming the 90 days trading horizon Konan Technology is expected to generate 0.91 times more return on investment than Total Soft. However, Konan Technology is 1.1 times less risky than Total Soft. It trades about 0.42 of its potential returns per unit of risk. Total Soft Bank is currently generating about -0.08 per unit of risk. If you would invest 1,451,000 in Konan Technology on September 2, 2024 and sell it today you would earn a total of 1,059,000 from holding Konan Technology or generate 72.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konan Technology vs. Total Soft Bank
Performance |
| Timeline |
| Konan Technology |
| Total Soft Bank |
Konan Technology and Total Soft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Total Soft
The main advantage of trading using opposite Konan Technology and Total Soft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Total Soft 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 Total Soft will offset losses from the drop in Total Soft's long position.| Konan Technology vs. Devsisters corporation | Konan Technology vs. Nice Information Telecommunication | Konan Technology vs. InfoBank |
| Total Soft vs. Devsisters corporation | Total Soft vs. Konan Technology | Total Soft vs. Nice Information Telecommunication | Total Soft vs. InfoBank |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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