Correlation Between Hyundai Home and Kosdaq Composite
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By analyzing existing cross correlation between Hyundai Home Shopping and Kosdaq Composite Index, you can compare the effects of market volatilities on Hyundai Home 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 Hyundai Home with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Home and Kosdaq Composite.
Diversification Opportunities for Hyundai Home and Kosdaq Composite
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hyundai and Kosdaq is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Home Shopping 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 Hyundai Home 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 Hyundai Home Shopping 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 Hyundai Home i.e., Hyundai Home and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Hyundai Home and Kosdaq Composite
Assuming the 90 days trading horizon Hyundai Home Shopping is expected to generate 0.71 times more return on investment than Kosdaq Composite. However, Hyundai Home Shopping is 1.42 times less risky than Kosdaq Composite. It trades about -0.05 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 4,790,000 in Hyundai Home Shopping on October 26, 2024 and sell it today you would lose (405,000) from holding Hyundai Home Shopping or give up 8.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.17% |
| Values | Daily Returns |
Hyundai Home Shopping vs. Kosdaq Composite Index
Performance |
| Timeline |
Hyundai Home and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Hyundai Home Shopping
Pair trading matchups for Hyundai Home
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Hyundai Home and Kosdaq Composite
The main advantage of trading using opposite Hyundai Home and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Home 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.| Hyundai Home vs. Shinsegae Engineering Construction | Hyundai Home vs. Hanshin Construction Co | Hyundai Home vs. Aprogen Healthcare Games | Hyundai Home vs. CKH Food Health |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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