Correlation Between Hyundai Engineering and Kosdaq Composite
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By analyzing existing cross correlation between Hyundai Engineering Plastics and Kosdaq Composite Index, you can compare the effects of market volatilities on Hyundai 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 Hyundai Engineering with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Engineering and Kosdaq Composite.
Diversification Opportunities for Hyundai Engineering and Kosdaq Composite
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hyundai and Kosdaq is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Engineering Plastics 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 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 Hyundai Engineering Plastics 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 Engineering i.e., Hyundai Engineering and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Hyundai Engineering and Kosdaq Composite
Assuming the 90 days trading horizon Hyundai Engineering Plastics is expected to under-perform the Kosdaq Composite. But the stock apears to be less risky and, when comparing its historical volatility, Hyundai Engineering Plastics is 1.58 times less risky than Kosdaq Composite. The stock trades about -0.14 of its potential returns per unit of risk. The Kosdaq Composite Index is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 71,796 in Kosdaq Composite Index on November 7, 2024 and sell it today you would earn a total of 1,033 from holding Kosdaq Composite Index or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Engineering Plastics vs. Kosdaq Composite Index
Performance |
| Timeline |
Hyundai Engineering and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Hyundai Engineering Plastics
Pair trading matchups for Hyundai Engineering
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Hyundai Engineering and Kosdaq Composite
The main advantage of trading using opposite Hyundai Engineering and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai 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.| Hyundai Engineering vs. Kg Chemical | Hyundai Engineering vs. Neungyule Education | Hyundai Engineering vs. Dongbang Transport Logistics | Hyundai Engineering vs. UJU Electronics Co |
| Kosdaq Composite vs. Pan Entertainment Co | Kosdaq Composite vs. Barunson Entertainment Arts | Kosdaq Composite vs. JYP Entertainment Corp | Kosdaq Composite vs. Choil Aluminum |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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