Correlation Between Lotte Non and Kosdaq Composite
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By analyzing existing cross correlation between Lotte Non Life Insurance and Kosdaq Composite Index, you can compare the effects of market volatilities on Lotte Non and Kosdaq Composite 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 Lotte Non with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Non and Kosdaq Composite.
Diversification Opportunities for Lotte Non and Kosdaq Composite
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lotte and Kosdaq is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Non Life Insurance and Kosdaq Composite Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kosdaq Composite Index and Lotte Non 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 Lotte Non Life Insurance are associated (or correlated) with Kosdaq Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kosdaq Composite Index has no effect on the direction of Lotte Non i.e., Lotte Non and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Lotte Non and Kosdaq Composite
Assuming the 90 days trading horizon Lotte Non Life Insurance is expected to generate 2.38 times more return on investment than Kosdaq Composite. However, Lotte Non is 2.38 times more volatile than Kosdaq Composite Index. It trades about 0.03 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about 0.0 per unit of risk. If you would invest 154,800 in Lotte Non Life Insurance on October 13, 2024 and sell it today you would earn a total of 55,700 from holding Lotte Non Life Insurance or generate 35.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Lotte Non Life Insurance vs. Kosdaq Composite Index
Performance |
Timeline |
Lotte Non and Kosdaq Composite Volatility Contrast
Predicted Return Density |
Returns |
Lotte Non Life Insurance
Pair trading matchups for Lotte Non
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Lotte Non and Kosdaq Composite
The main advantage of trading using opposite Lotte Non and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Non position performs unexpectedly, Kosdaq Composite 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 Kosdaq Composite will offset losses from the drop in Kosdaq Composite's long position.Lotte Non vs. Jeju Bank | Lotte Non vs. Jb Financial | Lotte Non vs. BNK Financial Group | Lotte Non vs. KakaoBank Corp |
Kosdaq Composite vs. Dgb Financial | Kosdaq Composite vs. Shinhan Inverse Silver | Kosdaq Composite vs. Lotte Non Life Insurance | Kosdaq Composite vs. Jin Air 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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