Correlation Between Sempio Foods and Kosdaq Composite
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By analyzing existing cross correlation between Sempio Foods Co and Kosdaq Composite Index, you can compare the effects of market volatilities on Sempio Foods 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 Sempio Foods with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sempio Foods and Kosdaq Composite.
Diversification Opportunities for Sempio Foods and Kosdaq Composite
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sempio and Kosdaq is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sempio Foods 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 Sempio Foods 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 Sempio Foods 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 Sempio Foods i.e., Sempio Foods and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Sempio Foods and Kosdaq Composite
Assuming the 90 days trading horizon Sempio Foods Co is expected to generate 1.68 times more return on investment than Kosdaq Composite. However, Sempio Foods is 1.68 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 -0.09 per unit of risk. If you would invest 3,020,000 in Sempio Foods Co on September 2, 2024 and sell it today you would lose (450,000) from holding Sempio Foods Co or give up 14.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sempio Foods Co vs. Kosdaq Composite Index
Performance |
| Timeline |
Sempio Foods and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Sempio Foods Co
Pair trading matchups for Sempio Foods
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Sempio Foods and Kosdaq Composite
The main advantage of trading using opposite Sempio Foods and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sempio Foods 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.| Sempio Foods vs. Korea Real Estate | Sempio Foods vs. Korea Ratings Co | Sempio Foods vs. IQuest Co | Sempio Foods vs. Wonbang Tech Co |
| Kosdaq Composite vs. DONGKUK TED METAL | Kosdaq Composite vs. Pungguk Ethanol Industrial | Kosdaq Composite vs. Duksan Hi Metal | Kosdaq Composite vs. Daiyang Metal 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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