Correlation Between Songwon Industrial and Kosdaq Composite
Specify exactly 2 symbols:
By analyzing existing cross correlation between Songwon Industrial Co and Kosdaq Composite Index, you can compare the effects of market volatilities on Songwon Industrial 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 Songwon Industrial with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songwon Industrial and Kosdaq Composite.
Diversification Opportunities for Songwon Industrial and Kosdaq Composite
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Songwon and Kosdaq is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Songwon Industrial Co 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 Songwon Industrial 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 Songwon Industrial Co 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 Songwon Industrial i.e., Songwon Industrial and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Songwon Industrial and Kosdaq Composite
Assuming the 90 days trading horizon Songwon Industrial Co is expected to generate 1.94 times more return on investment than Kosdaq Composite. However, Songwon Industrial is 1.94 times more volatile than Kosdaq Composite Index. It trades about 0.21 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about 0.2 per unit of risk. If you would invest 1,115,000 in Songwon Industrial Co on October 13, 2024 and sell it today you would earn a total of 116,000 from holding Songwon Industrial Co or generate 10.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songwon Industrial Co vs. Kosdaq Composite Index
Performance |
| Timeline |
Songwon Industrial and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Songwon Industrial Co
Pair trading matchups for Songwon Industrial
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Songwon Industrial and Kosdaq Composite
The main advantage of trading using opposite Songwon Industrial and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songwon Industrial 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.| Songwon Industrial vs. CU Tech Corp | Songwon Industrial vs. Narae Nanotech Corp | Songwon Industrial vs. Vitzro Tech Co | Songwon Industrial vs. Raontech |
| Kosdaq Composite vs. Kukdong Oil Chemicals | Kosdaq Composite vs. Amogreentech Co | Kosdaq Composite vs. V One Tech Co | Kosdaq Composite vs. Youngbo Chemical 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |