Correlation Between Konan Technology and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Koryo Credit 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 Koryo Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Koryo Credit Information, you can compare the effects of market volatilities on Konan Technology and Koryo Credit 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 Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Koryo Credit.
Diversification Opportunities for Konan Technology and Koryo Credit
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Konan and Koryo is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information 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 Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Konan Technology i.e., Konan Technology and Koryo Credit go up and down completely randomly.
Pair Corralation between Konan Technology and Koryo Credit
Assuming the 90 days trading horizon Konan Technology is expected to generate 4.01 times more return on investment than Koryo Credit. However, Konan Technology is 4.01 times more volatile than Koryo Credit Information. It trades about 0.02 of its potential returns per unit of risk. Koryo Credit Information is currently generating about -0.04 per unit of risk. If you would invest 2,570,000 in Konan Technology on September 3, 2024 and sell it today you would lose (60,000) from holding Konan Technology or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konan Technology vs. Koryo Credit Information
Performance |
| Timeline |
| Konan Technology |
| Koryo Credit Information |
Konan Technology and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Koryo Credit
The main advantage of trading using opposite Konan Technology and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| Konan Technology vs. Posco ICT | Konan Technology vs. Devsisters corporation | Konan Technology vs. Alchera | Konan Technology vs. Nice Information Telecommunication |
| Koryo Credit vs. Camus Engineering Construction | Koryo Credit vs. Dongkuk Structures Construction | Koryo Credit vs. Sam Yang Foods | Koryo Credit vs. Seoam Machinery Industry |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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