Correlation Between Konan Technology and SundayToz Corp
Can any of the company-specific risk be diversified away by investing in both Konan Technology and SundayToz Corp 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 SundayToz Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and SundayToz Corp, you can compare the effects of market volatilities on Konan Technology and SundayToz Corp 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 SundayToz Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and SundayToz Corp.
Diversification Opportunities for Konan Technology and SundayToz Corp
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Konan and SundayToz is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and SundayToz Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SundayToz Corp 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 SundayToz Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SundayToz Corp has no effect on the direction of Konan Technology i.e., Konan Technology and SundayToz Corp go up and down completely randomly.
Pair Corralation between Konan Technology and SundayToz Corp
Assuming the 90 days trading horizon Konan Technology is expected to generate 1.3 times more return on investment than SundayToz Corp. However, Konan Technology is 1.3 times more volatile than SundayToz Corp. It trades about 0.06 of its potential returns per unit of risk. SundayToz Corp is currently generating about -0.01 per unit of risk. If you would invest 977,500 in Konan Technology on September 3, 2024 and sell it today you would earn a total of 1,532,500 from holding Konan Technology or generate 156.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Konan Technology vs. SundayToz Corp
Performance |
| Timeline |
| Konan Technology |
| SundayToz Corp |
Konan Technology and SundayToz Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and SundayToz Corp
The main advantage of trading using opposite Konan Technology and SundayToz Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, SundayToz Corp 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 SundayToz Corp will offset losses from the drop in SundayToz Corp's long position.| Konan Technology vs. Posco ICT | Konan Technology vs. Devsisters corporation | Konan Technology vs. Alchera | Konan Technology vs. Nice Information Telecommunication |
| SundayToz Corp vs. Puloon Technology | SundayToz Corp vs. AeroSpace Technology of | SundayToz Corp vs. Dongil Metal Co | SundayToz Corp vs. Konan Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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