Correlation Between Konan Technology and NewFlex Technology
Can any of the company-specific risk be diversified away by investing in both Konan Technology and NewFlex Technology 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 NewFlex Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and NewFlex Technology Co, you can compare the effects of market volatilities on Konan Technology and NewFlex Technology 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 NewFlex Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and NewFlex Technology.
Diversification Opportunities for Konan Technology and NewFlex Technology
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Konan and NewFlex is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and NewFlex Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFlex Technology 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 NewFlex Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFlex Technology has no effect on the direction of Konan Technology i.e., Konan Technology and NewFlex Technology go up and down completely randomly.
Pair Corralation between Konan Technology and NewFlex Technology
Assuming the 90 days trading horizon Konan Technology is expected to under-perform the NewFlex Technology. In addition to that, Konan Technology is 1.57 times more volatile than NewFlex Technology Co. It trades about -0.16 of its total potential returns per unit of risk. NewFlex Technology Co is currently generating about -0.02 per unit of volatility. If you would invest 504,000 in NewFlex Technology Co on December 1, 2024 and sell it today you would lose (7,000) from holding NewFlex Technology Co or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konan Technology vs. NewFlex Technology Co
Performance |
| Timeline |
| Konan Technology |
| NewFlex Technology |
Konan Technology and NewFlex Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and NewFlex Technology
The main advantage of trading using opposite Konan Technology and NewFlex Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, NewFlex Technology 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 NewFlex Technology will offset losses from the drop in NewFlex Technology's long position.| Konan Technology vs. Kakao Games Corp | Konan Technology vs. Posco ICT | Konan Technology vs. Devsisters corporation | Konan Technology vs. Alchera |
| NewFlex Technology vs. Samlip General Foods | NewFlex Technology vs. Daishin Information Communications | NewFlex Technology vs. CJ Seafood Corp | NewFlex Technology vs. NICE Information Service |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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