Correlation Between Pyung Hwa and Kosdaq Composite
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By analyzing existing cross correlation between Pyung Hwa Industrial and Kosdaq Composite Index, you can compare the effects of market volatilities on Pyung Hwa 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 Pyung Hwa with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pyung Hwa and Kosdaq Composite.
Diversification Opportunities for Pyung Hwa and Kosdaq Composite
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pyung and Kosdaq is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pyung Hwa 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 Pyung Hwa 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 Pyung Hwa 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 Pyung Hwa i.e., Pyung Hwa and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Pyung Hwa and Kosdaq Composite
Assuming the 90 days trading horizon Pyung Hwa Industrial is expected to generate 6.92 times more return on investment than Kosdaq Composite. However, Pyung Hwa is 6.92 times more volatile than Kosdaq Composite Index. It trades about 0.29 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about 0.3 per unit of risk. If you would invest 89,000 in Pyung Hwa Industrial on November 3, 2024 and sell it today you would earn a total of 38,700 from holding Pyung Hwa Industrial or generate 43.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pyung Hwa Industrial vs. Kosdaq Composite Index
Performance |
| Timeline |
Pyung Hwa and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Pyung Hwa Industrial
Pair trading matchups for Pyung Hwa
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Pyung Hwa and Kosdaq Composite
The main advantage of trading using opposite Pyung Hwa and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyung Hwa 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.| Pyung Hwa vs. Hanil Chemical Ind | Pyung Hwa vs. TK Chemical | Pyung Hwa vs. Lotte Fine Chemical | Pyung Hwa vs. SV Investment |
| Kosdaq Composite vs. Finebesteel | Kosdaq Composite vs. Jeju Beer Co | Kosdaq Composite vs. Coloray International Investment | Kosdaq Composite vs. Samyung Trading 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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