Correlation Between Konan Technology and Incar Financial
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Incar Financial 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 Incar Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Incar Financial Service, you can compare the effects of market volatilities on Konan Technology and Incar Financial 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 Incar Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Incar Financial.
Diversification Opportunities for Konan Technology and Incar Financial
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Konan and Incar is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Incar Financial Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Incar Financial Service 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 Incar Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Incar Financial Service has no effect on the direction of Konan Technology i.e., Konan Technology and Incar Financial go up and down completely randomly.
Pair Corralation between Konan Technology and Incar Financial
Assuming the 90 days trading horizon Konan Technology is expected to generate 1.19 times less return on investment than Incar Financial. In addition to that, Konan Technology is 1.94 times more volatile than Incar Financial Service. It trades about 0.12 of its total potential returns per unit of risk. Incar Financial Service is currently generating about 0.27 per unit of volatility. If you would invest 542,113 in Incar Financial Service on October 25, 2024 and sell it today you would earn a total of 69,887 from holding Incar Financial Service or generate 12.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konan Technology vs. Incar Financial Service
Performance |
| Timeline |
| Konan Technology |
| Incar Financial Service |
Konan Technology and Incar Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Incar Financial
The main advantage of trading using opposite Konan Technology and Incar Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Incar Financial 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 Incar Financial will offset losses from the drop in Incar Financial's long position.| Konan Technology vs. Busan Industrial Co | Konan Technology vs. Busan Ind | Konan Technology vs. RPBio Inc | Konan Technology vs. Finebesteel |
| Incar Financial vs. Busan Industrial Co | Incar Financial vs. Busan Ind | Incar Financial vs. RPBio Inc | Incar Financial vs. Finebesteel |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |