Correlation Between Shinsegae Engineering and Kosdaq Composite
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By analyzing existing cross correlation between Shinsegae Engineering Construction and Kosdaq Composite Index, you can compare the effects of market volatilities on Shinsegae Engineering 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 Shinsegae Engineering with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Engineering and Kosdaq Composite.
Diversification Opportunities for Shinsegae Engineering and Kosdaq Composite
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinsegae and Kosdaq is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Engineering Construc 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 Shinsegae Engineering 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 Shinsegae Engineering Construction 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 Shinsegae Engineering i.e., Shinsegae Engineering and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Shinsegae Engineering and Kosdaq Composite
Assuming the 90 days trading horizon Shinsegae Engineering is expected to generate 27.85 times less return on investment than Kosdaq Composite. But when comparing it to its historical volatility, Shinsegae Engineering Construction is 22.91 times less risky than Kosdaq Composite. It trades about 0.34 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 62,701 in Kosdaq Composite Index on October 9, 2024 and sell it today you would earn a total of 9,095 from holding Kosdaq Composite Index or generate 14.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Engineering Construc vs. Kosdaq Composite Index
Performance |
| Timeline |
Shinsegae Engineering and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Shinsegae Engineering Construction
Pair trading matchups for Shinsegae Engineering
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Shinsegae Engineering and Kosdaq Composite
The main advantage of trading using opposite Shinsegae Engineering and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Engineering 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.| Shinsegae Engineering vs. AptaBio Therapeutics | Shinsegae Engineering vs. Daewoo SBI SPAC | Shinsegae Engineering vs. Dream Security co | Shinsegae Engineering vs. Microfriend |
| Kosdaq Composite vs. Shinhan Inverse Copper | Kosdaq Composite vs. Hanjoo Light Metal | Kosdaq Composite vs. Coloray International Investment | Kosdaq Composite vs. EBEST Investment Securities |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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