Correlation Between Pungguk Ethanol and Kosdaq Composite
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By analyzing existing cross correlation between Pungguk Ethanol Industrial and Kosdaq Composite Index, you can compare the effects of market volatilities on Pungguk Ethanol 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 Pungguk Ethanol with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pungguk Ethanol and Kosdaq Composite.
Diversification Opportunities for Pungguk Ethanol and Kosdaq Composite
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pungguk and Kosdaq is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Pungguk Ethanol Industrial 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 Pungguk Ethanol 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 Pungguk Ethanol Industrial 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 Pungguk Ethanol i.e., Pungguk Ethanol and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Pungguk Ethanol and Kosdaq Composite
Assuming the 90 days trading horizon Pungguk Ethanol Industrial is expected to generate 0.51 times more return on investment than Kosdaq Composite. However, Pungguk Ethanol Industrial is 1.95 times less risky than Kosdaq Composite. It trades about -0.28 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about -0.38 per unit of risk. If you would invest 1,014,000 in Pungguk Ethanol Industrial on September 3, 2024 and sell it today you would lose (40,000) from holding Pungguk Ethanol Industrial or give up 3.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pungguk Ethanol Industrial vs. Kosdaq Composite Index
Performance |
| Timeline |
Pungguk Ethanol and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Pungguk Ethanol Industrial
Pair trading matchups for Pungguk Ethanol
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Pungguk Ethanol and Kosdaq Composite
The main advantage of trading using opposite Pungguk Ethanol and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pungguk Ethanol 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.| Pungguk Ethanol vs. SCI Information Service | Pungguk Ethanol vs. Cots Technology Co | Pungguk Ethanol vs. Shinsegae Information Communication | Pungguk Ethanol vs. Taegu Broadcasting |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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