Correlation Between Sewoon Medical and Kosdaq Composite
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By analyzing existing cross correlation between Sewoon Medical Co and Kosdaq Composite Index, you can compare the effects of market volatilities on Sewoon Medical 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 Sewoon Medical with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sewoon Medical and Kosdaq Composite.
Diversification Opportunities for Sewoon Medical and Kosdaq Composite
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sewoon and Kosdaq is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sewoon Medical Co 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 Sewoon Medical 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 Sewoon Medical Co 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 Sewoon Medical i.e., Sewoon Medical and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Sewoon Medical and Kosdaq Composite
Assuming the 90 days trading horizon Sewoon Medical Co is expected to generate 1.04 times more return on investment than Kosdaq Composite. However, Sewoon Medical is 1.04 times more volatile than Kosdaq Composite Index. It trades about -0.03 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about -0.06 per unit of risk. If you would invest 281,361 in Sewoon Medical Co on October 17, 2024 and sell it today you would lose (29,861) from holding Sewoon Medical Co or give up 10.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sewoon Medical Co vs. Kosdaq Composite Index
Performance |
| Timeline |
Sewoon Medical and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Sewoon Medical Co
Pair trading matchups for Sewoon Medical
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Sewoon Medical and Kosdaq Composite
The main advantage of trading using opposite Sewoon Medical and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sewoon Medical 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.| Sewoon Medical vs. Daiyang Metal Co | Sewoon Medical vs. Dongbang Transport Logistics | Sewoon Medical vs. Daishin Information Communications | Sewoon Medical vs. PJ Metal Co |
| Kosdaq Composite vs. Sewoon Medical Co | Kosdaq Composite vs. Seah Steel Corp | Kosdaq Composite vs. Hyundai Engineering Construction | Kosdaq Composite vs. KCC Engineering Construction |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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