Correlation Between Konan Technology and Infinitt Healthcare
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Infinitt Healthcare 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 Infinitt Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Infinitt Healthcare Co, you can compare the effects of market volatilities on Konan Technology and Infinitt Healthcare 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 Infinitt Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Infinitt Healthcare.
Diversification Opportunities for Konan Technology and Infinitt Healthcare
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Konan and Infinitt is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Infinitt Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinitt Healthcare 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 Infinitt Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinitt Healthcare has no effect on the direction of Konan Technology i.e., Konan Technology and Infinitt Healthcare go up and down completely randomly.
Pair Corralation between Konan Technology and Infinitt Healthcare
Assuming the 90 days trading horizon Konan Technology is expected to under-perform the Infinitt Healthcare. In addition to that, Konan Technology is 2.21 times more volatile than Infinitt Healthcare Co. It trades about -0.05 of its total potential returns per unit of risk. Infinitt Healthcare Co is currently generating about -0.04 per unit of volatility. If you would invest 543,000 in Infinitt Healthcare Co on August 26, 2024 and sell it today you would lose (95,000) from holding Infinitt Healthcare Co or give up 17.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.39% |
| Values | Daily Returns |
Konan Technology vs. Infinitt Healthcare Co
Performance |
| Timeline |
| Konan Technology |
| Infinitt Healthcare |
Konan Technology and Infinitt Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Infinitt Healthcare
The main advantage of trading using opposite Konan Technology and Infinitt Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Infinitt Healthcare 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 Infinitt Healthcare will offset losses from the drop in Infinitt Healthcare's long position.| Konan Technology vs. Posco ICT | Konan Technology vs. Devsisters corporation | Konan Technology vs. Alchera | Konan Technology vs. Nice Information Telecommunication |
| Infinitt Healthcare vs. AptaBio Therapeutics | Infinitt Healthcare vs. Daewoo SBI SPAC | Infinitt Healthcare vs. Dream Security co | Infinitt Healthcare 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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