Correlation Between Konan Technology and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Sangsin Energy 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 Sangsin Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Sangsin Energy Display, you can compare the effects of market volatilities on Konan Technology and Sangsin Energy 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 Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Sangsin Energy.
Diversification Opportunities for Konan Technology and Sangsin Energy
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Konan and Sangsin is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display 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 Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of Konan Technology i.e., Konan Technology and Sangsin Energy go up and down completely randomly.
Pair Corralation between Konan Technology and Sangsin Energy
Assuming the 90 days trading horizon Konan Technology is expected to generate 2.49 times more return on investment than Sangsin Energy. However, Konan Technology is 2.49 times more volatile than Sangsin Energy Display. It trades about 0.38 of its potential returns per unit of risk. Sangsin Energy Display is currently generating about -0.52 per unit of risk. If you would invest 1,553,000 in Konan Technology on September 3, 2024 and sell it today you would earn a total of 957,000 from holding Konan Technology or generate 61.62% 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. Sangsin Energy Display
Performance |
| Timeline |
| Konan Technology |
| Sangsin Energy Display |
Konan Technology and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Sangsin Energy
The main advantage of trading using opposite Konan Technology and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| Konan Technology vs. Posco ICT | Konan Technology vs. Devsisters corporation | Konan Technology vs. Alchera | Konan Technology vs. Nice Information Telecommunication |
| Sangsin Energy vs. LG Display | Sangsin Energy vs. Hyundai Motor | Sangsin Energy vs. Hyundai Motor Co | Sangsin Energy vs. Hyundai Motor 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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