Correlation Between Konan Technology and Settlebank
Can any of the company-specific risk be diversified away by investing in both Konan Technology and Settlebank 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 Settlebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konan Technology and Settlebank, you can compare the effects of market volatilities on Konan Technology and Settlebank 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 Settlebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konan Technology and Settlebank.
Diversification Opportunities for Konan Technology and Settlebank
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Konan and Settlebank is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Konan Technology and Settlebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Settlebank 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 Settlebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Settlebank has no effect on the direction of Konan Technology i.e., Konan Technology and Settlebank go up and down completely randomly.
Pair Corralation between Konan Technology and Settlebank
Assuming the 90 days trading horizon Konan Technology is expected to generate 2.75 times more return on investment than Settlebank. However, Konan Technology is 2.75 times more volatile than Settlebank. It trades about 0.05 of its potential returns per unit of risk. Settlebank is currently generating about -0.1 per unit of risk. If you would invest 1,947,000 in Konan Technology on December 30, 2024 and sell it today you would earn a total of 188,000 from holding Konan Technology or generate 9.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Konan Technology vs. Settlebank
Performance |
Timeline |
Konan Technology |
Settlebank |
Konan Technology and Settlebank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Konan Technology and Settlebank
The main advantage of trading using opposite Konan Technology and Settlebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konan Technology position performs unexpectedly, Settlebank 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 Settlebank will offset losses from the drop in Settlebank's long position.Konan Technology vs. Samsung Electronics Co | Konan Technology vs. JYP Entertainment Corp | Konan Technology vs. DAEDUCK ELECTRONICS CoLtd | Konan Technology vs. PJ Electronics Co |
Settlebank vs. Shinsegae Information Communication | Settlebank vs. BNK Financial Group | Settlebank vs. iNtRON Biotechnology | Settlebank vs. Nice Information Telecommunication |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |