Correlation Between Shin Steel and Kosdaq Composite
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By analyzing existing cross correlation between Shin Steel Co and Kosdaq Composite Index, you can compare the effects of market volatilities on Shin Steel 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 Shin Steel with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Steel and Kosdaq Composite.
Diversification Opportunities for Shin Steel and Kosdaq Composite
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shin and Kosdaq is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shin Steel 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 Shin Steel 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 Shin Steel 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 Shin Steel i.e., Shin Steel and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Shin Steel and Kosdaq Composite
Assuming the 90 days trading horizon Shin Steel Co is expected to under-perform the Kosdaq Composite. In addition to that, Shin Steel is 1.99 times more volatile than Kosdaq Composite Index. It trades about -0.21 of its total potential returns per unit of risk. Kosdaq Composite Index is currently generating about 0.36 per unit of volatility. If you would invest 67,819 in Kosdaq Composite Index on October 29, 2024 and sell it today you would earn a total of 5,055 from holding Kosdaq Composite Index or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Steel Co vs. Kosdaq Composite Index
Performance |
| Timeline |
Shin Steel and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Shin Steel Co
Pair trading matchups for Shin Steel
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Shin Steel and Kosdaq Composite
The main advantage of trading using opposite Shin Steel and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Steel 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.| Shin Steel vs. Haitai Confectionery Foods | Shin Steel vs. Hyundai Engineering Construction | Shin Steel vs. SEOJEON ELECTRIC MACHINERY | Shin Steel vs. Keyang Electric Machinery |
| Kosdaq Composite vs. Anam Electronics Co | Kosdaq Composite vs. Samji Electronics Co | Kosdaq Composite vs. DAEDUCK ELECTRONICS CoLtd | Kosdaq Composite vs. Daeduck Electronics 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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