Correlation Between Konan Technology and YeSUN Tech
Can any of the company-specific risk be diversified away by investing in both Konan Technology and YeSUN Tech 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 YeSUN Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and YeSUN Tech CoLtd, you can compare the effects of market volatilities on Konan Technology and YeSUN Tech 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 YeSUN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and YeSUN Tech.
Diversification Opportunities for Konan Technology and YeSUN Tech
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Konan and YeSUN is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and YeSUN Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeSUN Tech 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 YeSUN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeSUN Tech CoLtd has no effect on the direction of Konan Technology i.e., Konan Technology and YeSUN Tech go up and down completely randomly.
Pair Corralation between Konan Technology and YeSUN Tech
Assuming the 90 days trading horizon Konan Technology is expected to under-perform the YeSUN Tech. But the stock apears to be less risky and, when comparing its historical volatility, Konan Technology is 1.21 times less risky than YeSUN Tech. The stock trades about -0.03 of its potential returns per unit of risk. The YeSUN Tech CoLtd is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 73,500 in YeSUN Tech CoLtd on November 2, 2024 and sell it today you would lose (24,400) from holding YeSUN Tech CoLtd or give up 33.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konan Technology vs. YeSUN Tech CoLtd
Performance |
| Timeline |
| Konan Technology |
| YeSUN Tech CoLtd |
Konan Technology and YeSUN Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and YeSUN Tech
The main advantage of trading using opposite Konan Technology and YeSUN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, YeSUN Tech 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 YeSUN Tech will offset losses from the drop in YeSUN Tech'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 |
| YeSUN Tech vs. Digital Multimedia Technology | YeSUN Tech vs. Youngchang Chemical Co | YeSUN Tech vs. SAMG Entertainment Co | YeSUN Tech vs. Kyung In Synthetic Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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