Correlation Between Ssangyong Information and Kosdaq Composite
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By analyzing existing cross correlation between Ssangyong Information Communication and Kosdaq Composite Index, you can compare the effects of market volatilities on Ssangyong Information 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 Ssangyong Information with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Kosdaq Composite.
Diversification Opportunities for Ssangyong Information and Kosdaq Composite
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ssangyong and Kosdaq is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic 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 Ssangyong Information 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 Ssangyong Information Communication 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 Ssangyong Information i.e., Ssangyong Information and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Ssangyong Information and Kosdaq Composite
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the Kosdaq Composite. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 1.18 times less risky than Kosdaq Composite. The stock trades about -0.22 of its potential returns per unit of risk. The Kosdaq Composite Index is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 68,663 in Kosdaq Composite Index on November 1, 2024 and sell it today you would earn a total of 4,211 from holding Kosdaq Composite Index or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Kosdaq Composite Index
Performance |
| Timeline |
Ssangyong Information and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Ssangyong Information Communication
Pair trading matchups for Ssangyong Information
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Ssangyong Information and Kosdaq Composite
The main advantage of trading using opposite Ssangyong Information and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information 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.| Ssangyong Information vs. Grand Korea Leisure | Ssangyong Information vs. Dongwoon Anatech Co | Ssangyong Information vs. Playgram Co | Ssangyong Information vs. KMH Hitech Co |
| Kosdaq Composite vs. Digital Power Communications | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. PlayD Co | Kosdaq Composite vs. Nable Communications |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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