Correlation Between Konan Technology and Vina Technology
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Vina 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 Vina 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 Vina Technology Co, you can compare the effects of market volatilities on Konan Technology and Vina 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 Vina Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Vina Technology.
Diversification Opportunities for Konan Technology and Vina Technology
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Konan and Vina is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Vina Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina 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 Vina Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina Technology has no effect on the direction of Konan Technology i.e., Konan Technology and Vina Technology go up and down completely randomly.
Pair Corralation between Konan Technology and Vina Technology
Assuming the 90 days trading horizon Konan Technology is expected to under-perform the Vina Technology. In addition to that, Konan Technology is 1.03 times more volatile than Vina Technology Co. It trades about -0.14 of its total potential returns per unit of risk. Vina Technology Co is currently generating about -0.01 per unit of volatility. If you would invest 2,815,000 in Vina Technology Co on November 2, 2024 and sell it today you would lose (35,000) from holding Vina Technology Co or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konan Technology vs. Vina Technology Co
Performance |
| Timeline |
| Konan Technology |
| Vina Technology |
Konan Technology and Vina Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Vina Technology
The main advantage of trading using opposite Konan Technology and Vina Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Vina 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 Vina Technology will offset losses from the drop in Vina Technology's long position.| Konan Technology vs. LG Chemicals | Konan Technology vs. FOODWELL Co | Konan Technology vs. Korea Shipbuilding Offshore | Konan Technology vs. Sempio Foods Co |
| Vina Technology vs. Daejoo Electronic Materials | Vina Technology vs. Parksystems Corp | Vina Technology vs. BH Co | Vina Technology vs. Partron 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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