Correlation Between Konan Technology and Neungyule Education
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Neungyule Education 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 Neungyule Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Neungyule Education, you can compare the effects of market volatilities on Konan Technology and Neungyule Education 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 Neungyule Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Neungyule Education.
Diversification Opportunities for Konan Technology and Neungyule Education
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Konan and Neungyule is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Neungyule Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neungyule Education 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 Neungyule Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neungyule Education has no effect on the direction of Konan Technology i.e., Konan Technology and Neungyule Education go up and down completely randomly.
Pair Corralation between Konan Technology and Neungyule Education
Assuming the 90 days trading horizon Konan Technology is expected to under-perform the Neungyule Education. In addition to that, Konan Technology is 1.3 times more volatile than Neungyule Education. It trades about -0.16 of its total potential returns per unit of risk. Neungyule Education is currently generating about 0.09 per unit of volatility. If you would invest 394,000 in Neungyule Education on December 1, 2024 and sell it today you would earn a total of 18,000 from holding Neungyule Education or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konan Technology vs. Neungyule Education
Performance |
| Timeline |
| Konan Technology |
| Neungyule Education |
Konan Technology and Neungyule Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Neungyule Education
The main advantage of trading using opposite Konan Technology and Neungyule Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Neungyule Education 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 Neungyule Education will offset losses from the drop in Neungyule Education's long position.| Konan Technology vs. Kakao Games Corp | Konan Technology vs. Posco ICT | Konan Technology vs. Devsisters corporation | Konan Technology vs. Alchera |
| Neungyule Education vs. PJ Metal Co | Neungyule Education vs. Seoyon Topmetal Co | Neungyule Education vs. Hanjin Transportation Co | Neungyule Education vs. Mirai Semiconductors 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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