Correlation Between Konan Technology and DukSan Neolux

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Can any of the company-specific risk be diversified away by investing in both Konan Technology and DukSan Neolux 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 DukSan Neolux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and DukSan Neolux CoLtd, you can compare the effects of market volatilities on Konan Technology and DukSan Neolux 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 DukSan Neolux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and DukSan Neolux.

Diversification Opportunities for Konan Technology and DukSan Neolux

-0.67
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Konan and DukSan is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and DukSan Neolux CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DukSan Neolux CoLtd 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 DukSan Neolux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DukSan Neolux CoLtd has no effect on the direction of Konan Technology i.e., Konan Technology and DukSan Neolux go up and down completely randomly.

Pair Corralation between Konan Technology and DukSan Neolux

Assuming the 90 days trading horizon Konan Technology is expected to generate 2.25 times more return on investment than DukSan Neolux. However, Konan Technology is 2.25 times more volatile than DukSan Neolux CoLtd. It trades about 0.02 of its potential returns per unit of risk. DukSan Neolux CoLtd is currently generating about -0.09 per unit of risk. If you would invest  1,970,000  in Konan Technology on September 12, 2024 and sell it today you would lose (36,000) from holding Konan Technology or give up 1.83% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Konan Technology  vs.  DukSan Neolux CoLtd

 Performance 
       Timeline  
Konan Technology 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Konan Technology are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Konan Technology sustained solid returns over the last few months and may actually be approaching a breakup point.
DukSan Neolux CoLtd 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days DukSan Neolux CoLtd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Konan Technology and DukSan Neolux Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Konan Technology and DukSan Neolux

The main advantage of trading using opposite Konan Technology and DukSan Neolux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, DukSan Neolux 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 DukSan Neolux will offset losses from the drop in DukSan Neolux's long position.
The idea behind Konan Technology and DukSan Neolux CoLtd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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