Correlation Between Hwangkum Steel and Kosdaq Composite
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By analyzing existing cross correlation between Hwangkum Steel Technology and Kosdaq Composite Index, you can compare the effects of market volatilities on Hwangkum Steel 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 Hwangkum Steel with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hwangkum Steel and Kosdaq Composite.
Diversification Opportunities for Hwangkum Steel and Kosdaq Composite
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hwangkum and Kosdaq is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hwangkum Steel Technology 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 Hwangkum Steel 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 Hwangkum Steel Technology 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 Hwangkum Steel i.e., Hwangkum Steel and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Hwangkum Steel and Kosdaq Composite
Assuming the 90 days trading horizon Hwangkum Steel is expected to generate 1.86 times less return on investment than Kosdaq Composite. But when comparing it to its historical volatility, Hwangkum Steel Technology is 1.48 times less risky than Kosdaq Composite. It trades about 0.21 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 72,829 in Kosdaq Composite Index on November 28, 2024 and sell it today you would earn a total of 4,521 from holding Kosdaq Composite Index or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Hwangkum Steel Technology vs. Kosdaq Composite Index
Performance |
| Timeline |
Hwangkum Steel and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Hwangkum Steel Technology
Pair trading matchups for Hwangkum Steel
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Hwangkum Steel and Kosdaq Composite
The main advantage of trading using opposite Hwangkum Steel and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hwangkum Steel 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.| Hwangkum Steel vs. System and Application | Hwangkum Steel vs. Daishin Information Communications | Hwangkum Steel vs. DataSolution | Hwangkum Steel vs. Daou Data Corp |
| Kosdaq Composite vs. Digital Power Communications | Kosdaq Composite vs. Chorokbaem Healthcare Co | Kosdaq Composite vs. LG Household Healthcare | Kosdaq Composite vs. PlayD 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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