Correlation Between Kukdong Oil and Kosdaq Composite
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By analyzing existing cross correlation between Kukdong Oil Chemicals and Kosdaq Composite Index, you can compare the effects of market volatilities on Kukdong Oil 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 Kukdong Oil with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukdong Oil and Kosdaq Composite.
Diversification Opportunities for Kukdong Oil and Kosdaq Composite
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kukdong and Kosdaq is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kukdong Oil Chemicals 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 Kukdong Oil 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 Kukdong Oil Chemicals 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 Kukdong Oil i.e., Kukdong Oil and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Kukdong Oil and Kosdaq Composite
Assuming the 90 days trading horizon Kukdong Oil Chemicals is expected to generate 1.92 times more return on investment than Kosdaq Composite. However, Kukdong Oil is 1.92 times more volatile than Kosdaq Composite Index. It trades about 0.02 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 329,311 in Kukdong Oil Chemicals on October 12, 2024 and sell it today you would earn a total of 20,689 from holding Kukdong Oil Chemicals or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukdong Oil Chemicals vs. Kosdaq Composite Index
Performance |
| Timeline |
Kukdong Oil and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Kukdong Oil Chemicals
Pair trading matchups for Kukdong Oil
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Kukdong Oil and Kosdaq Composite
The main advantage of trading using opposite Kukdong Oil and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukdong Oil 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.| Kukdong Oil vs. Youl Chon Chemical | Kukdong Oil vs. Grand Korea Leisure | Kukdong Oil vs. LG Display Co | Kukdong Oil vs. Namhae Chemical |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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