Correlation Between Konan Technology and Sungchang Autotech
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Sungchang Autotech 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 Sungchang Autotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Sungchang Autotech Co, you can compare the effects of market volatilities on Konan Technology and Sungchang Autotech 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 Sungchang Autotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Sungchang Autotech.
Diversification Opportunities for Konan Technology and Sungchang Autotech
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Konan and Sungchang is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Sungchang Autotech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungchang Autotech 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 Sungchang Autotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungchang Autotech has no effect on the direction of Konan Technology i.e., Konan Technology and Sungchang Autotech go up and down completely randomly.
Pair Corralation between Konan Technology and Sungchang Autotech
Assuming the 90 days trading horizon Konan Technology is expected to generate 1.67 times more return on investment than Sungchang Autotech. However, Konan Technology is 1.67 times more volatile than Sungchang Autotech Co. It trades about -0.01 of its potential returns per unit of risk. Sungchang Autotech Co is currently generating about -0.04 per unit of risk. If you would invest 3,185,000 in Konan Technology on August 29, 2024 and sell it today you would lose (655,000) from holding Konan Technology or give up 20.57% 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. Sungchang Autotech Co
Performance |
| Timeline |
| Konan Technology |
| Sungchang Autotech |
Konan Technology and Sungchang Autotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Sungchang Autotech
The main advantage of trading using opposite Konan Technology and Sungchang Autotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Sungchang Autotech 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 Sungchang Autotech will offset losses from the drop in Sungchang Autotech's long position.| Konan Technology vs. Moonbae Steel | Konan Technology vs. LG Electronics Pfd | Konan Technology vs. Sunny Electronics Corp | Konan Technology vs. Hankook Steel Co |
| Sungchang Autotech vs. KMH Hitech Co | Sungchang Autotech vs. GemVaxKAEL CoLtd | Sungchang Autotech vs. Busan Industrial Co | Sungchang Autotech vs. Busan Ind |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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