Correlation Between Konan Technology and Alchera
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Alchera 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 Alchera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Alchera, you can compare the effects of market volatilities on Konan Technology and Alchera 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 Alchera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Alchera.
Diversification Opportunities for Konan Technology and Alchera
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Konan and Alchera is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Alchera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alchera 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 Alchera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alchera has no effect on the direction of Konan Technology i.e., Konan Technology and Alchera go up and down completely randomly.
Pair Corralation between Konan Technology and Alchera
Assuming the 90 days trading horizon Konan Technology is expected to generate 1.94 times more return on investment than Alchera. However, Konan Technology is 1.94 times more volatile than Alchera. It trades about 0.42 of its potential returns per unit of risk. Alchera is currently generating about -0.15 per unit of risk. If you would invest 1,440,000 in Konan Technology on August 29, 2024 and sell it today you would earn a total of 1,090,000 from holding Konan Technology or generate 75.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konan Technology vs. Alchera
Performance |
| Timeline |
| Konan Technology |
| Alchera |
Konan Technology and Alchera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konan Technology and Alchera
The main advantage of trading using opposite Konan Technology and Alchera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Alchera 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 Alchera will offset losses from the drop in Alchera's long position.| Konan Technology vs. Moonbae Steel | Konan Technology vs. LG Electronics Pfd | Konan Technology vs. Sunny Electronics Corp | Konan Technology vs. Hankook Steel Co |
| Alchera vs. Kbi Metal Co | Alchera vs. CU Medical Systems | Alchera vs. Daedong Metals Co | Alchera vs. Sewoon Medical Co |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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