Correlation Between Konan Technology and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Hyundai Home 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 Hyundai Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Hyundai Home Shopping, you can compare the effects of market volatilities on Konan Technology and Hyundai Home 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 Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Hyundai Home.
Diversification Opportunities for Konan Technology and Hyundai Home
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Konan and Hyundai is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Hyundai Home Shopping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Home Shopping 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 Hyundai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Home Shopping has no effect on the direction of Konan Technology i.e., Konan Technology and Hyundai Home go up and down completely randomly.
Pair Corralation between Konan Technology and Hyundai Home
Assuming the 90 days trading horizon Konan Technology is expected to under-perform the Hyundai Home. In addition to that, Konan Technology is 1.98 times more volatile than Hyundai Home Shopping. It trades about 0.0 of its total potential returns per unit of risk. Hyundai Home Shopping is currently generating about 0.02 per unit of volatility. If you would invest 4,295,853 in Hyundai Home Shopping on September 2, 2024 and sell it today you would earn a total of 219,147 from holding Hyundai Home Shopping or generate 5.1% 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. Hyundai Home Shopping
Performance |
| Timeline |
| Konan Technology |
| Hyundai Home Shopping |
Konan Technology and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Hyundai Home
The main advantage of trading using opposite Konan Technology and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Hyundai Home 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 Hyundai Home will offset losses from the drop in Hyundai Home's long position.| Konan Technology vs. Devsisters corporation | Konan Technology vs. Nice Information Telecommunication | Konan Technology vs. InfoBank |
| Hyundai Home vs. AptaBio Therapeutics | Hyundai Home vs. Daewoo SBI SPAC | Hyundai Home vs. Dream Security co | Hyundai Home vs. Microfriend |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |