Correlation Between Konan Technology and Samsung Special
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Samsung Special 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 Samsung Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Samsung Special Purpose, you can compare the effects of market volatilities on Konan Technology and Samsung Special 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 Samsung Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Samsung Special.
Diversification Opportunities for Konan Technology and Samsung Special
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Konan and Samsung is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Samsung Special Purpose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Special Purpose 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 Samsung Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Special Purpose has no effect on the direction of Konan Technology i.e., Konan Technology and Samsung Special go up and down completely randomly.
Pair Corralation between Konan Technology and Samsung Special
Assuming the 90 days trading horizon Konan Technology is expected to generate 1.62 times more return on investment than Samsung Special. However, Konan Technology is 1.62 times more volatile than Samsung Special Purpose. It trades about 0.12 of its potential returns per unit of risk. Samsung Special Purpose is currently generating about 0.14 per unit of risk. If you would invest 1,962,000 in Konan Technology on October 25, 2024 and sell it today you would earn a total of 178,000 from holding Konan Technology or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konan Technology vs. Samsung Special Purpose
Performance |
| Timeline |
| Konan Technology |
| Samsung Special Purpose |
Konan Technology and Samsung Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Samsung Special
The main advantage of trading using opposite Konan Technology and Samsung Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Samsung Special 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 Samsung Special will offset losses from the drop in Samsung Special's long position.| Konan Technology vs. Busan Industrial Co | Konan Technology vs. Busan Ind | Konan Technology vs. RPBio Inc | Konan Technology vs. Finebesteel |
| Samsung Special vs. Daewon Chemical Co | Samsung Special vs. Kukdong Oil Chemicals | Samsung Special vs. Korea Petro Chemical | Samsung Special vs. CU Medical Systems |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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