Correlation Between Konan Technology and Iljin HySolus
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Iljin HySolus 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 Iljin HySolus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Iljin HySolus Co, you can compare the effects of market volatilities on Konan Technology and Iljin HySolus 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 Iljin HySolus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Iljin HySolus.
Diversification Opportunities for Konan Technology and Iljin HySolus
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Konan and Iljin is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Iljin HySolus Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin HySolus 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 Iljin HySolus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin HySolus has no effect on the direction of Konan Technology i.e., Konan Technology and Iljin HySolus go up and down completely randomly.
Pair Corralation between Konan Technology and Iljin HySolus
Assuming the 90 days trading horizon Konan Technology is expected to generate 2.37 times more return on investment than Iljin HySolus. However, Konan Technology is 2.37 times more volatile than Iljin HySolus Co. It trades about 0.04 of its potential returns per unit of risk. Iljin HySolus Co is currently generating about -0.04 per unit of risk. If you would invest 1,300,000 in Konan Technology on September 12, 2024 and sell it today you would earn a total of 634,000 from holding Konan Technology or generate 48.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Konan Technology vs. Iljin HySolus Co
Performance |
| Timeline |
| Konan Technology |
| Iljin HySolus |
Konan Technology and Iljin HySolus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Iljin HySolus
The main advantage of trading using opposite Konan Technology and Iljin HySolus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Iljin HySolus 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 Iljin HySolus will offset losses from the drop in Iljin HySolus' long position.| Konan Technology vs. Kakao Games Corp | Konan Technology vs. Devsisters corporation | Konan Technology vs. Nice Information Telecommunication | Konan Technology vs. SKONEC Entertainment Co |
| Iljin HySolus vs. Samsung Electronics Co | Iljin HySolus vs. Samsung Electronics Co | Iljin HySolus vs. LG Energy Solution | Iljin HySolus vs. SK Hynix |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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