Correlation Between LAKE MATERIALS and Kosdaq Composite
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By analyzing existing cross correlation between LAKE MATERIALS LTD and Kosdaq Composite Index, you can compare the effects of market volatilities on LAKE MATERIALS 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 LAKE MATERIALS with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of LAKE MATERIALS and Kosdaq Composite.
Diversification Opportunities for LAKE MATERIALS and Kosdaq Composite
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LAKE and Kosdaq is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding LAKE MATERIALS LTD 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 LAKE MATERIALS 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 LAKE MATERIALS LTD 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 LAKE MATERIALS i.e., LAKE MATERIALS and Kosdaq Composite go up and down completely randomly.
Pair Corralation between LAKE MATERIALS and Kosdaq Composite
Assuming the 90 days trading horizon LAKE MATERIALS is expected to generate 2.82 times less return on investment than Kosdaq Composite. In addition to that, LAKE MATERIALS is 2.04 times more volatile than Kosdaq Composite Index. It trades about 0.02 of its total potential returns per unit of risk. Kosdaq Composite Index is currently generating about 0.11 per unit of volatility. If you would invest 67,819 in Kosdaq Composite Index on October 30, 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LAKE MATERIALS LTD vs. Kosdaq Composite Index
Performance |
| Timeline |
LAKE MATERIALS and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
LAKE MATERIALS LTD
Pair trading matchups for LAKE MATERIALS
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with LAKE MATERIALS and Kosdaq Composite
The main advantage of trading using opposite LAKE MATERIALS and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAKE MATERIALS 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.| LAKE MATERIALS vs. Sangsangin Investment Securities | LAKE MATERIALS vs. Seers Technology | LAKE MATERIALS vs. BIT Computer Co | LAKE MATERIALS vs. HB Technology TD |
| Kosdaq Composite vs. Nable Communications | Kosdaq Composite vs. Lake Materials Co | Kosdaq Composite vs. Hyundai Engineering Plastics | Kosdaq Composite vs. Union Materials Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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