Correlation Between Asiana Airlines and Kosdaq Composite
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By analyzing existing cross correlation between Asiana Airlines and Kosdaq Composite Index, you can compare the effects of market volatilities on Asiana Airlines 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 Asiana Airlines with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiana Airlines and Kosdaq Composite.
Diversification Opportunities for Asiana Airlines and Kosdaq Composite
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asiana and Kosdaq is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Asiana Airlines 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 Asiana Airlines 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 Asiana Airlines 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 Asiana Airlines i.e., Asiana Airlines and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Asiana Airlines and Kosdaq Composite
Assuming the 90 days trading horizon Asiana Airlines is expected to generate 1.04 times more return on investment than Kosdaq Composite. However, Asiana Airlines is 1.04 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 -0.03 per unit of risk. If you would invest 1,005,000 in Asiana Airlines on October 26, 2024 and sell it today you would earn a total of 47,000 from holding Asiana Airlines or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Asiana Airlines vs. Kosdaq Composite Index
Performance |
| Timeline |
Asiana Airlines and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Asiana Airlines
Pair trading matchups for Asiana Airlines
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Asiana Airlines and Kosdaq Composite
The main advantage of trading using opposite Asiana Airlines and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiana Airlines 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.| Asiana Airlines vs. Samlip General Foods | Asiana Airlines vs. Shinhan Inverse Silver | Asiana Airlines vs. Handok Clean Tech | Asiana Airlines vs. Sempio Foods Co |
| Kosdaq Composite vs. Dongkuk Structures Construction | Kosdaq Composite vs. Asiana Airlines | Kosdaq Composite vs. Hyundai Home Shopping | Kosdaq Composite vs. SK Chemicals 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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