Correlation Between SK Chemicals and Kosdaq Composite
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By analyzing existing cross correlation between SK Chemicals Co and Kosdaq Composite Index, you can compare the effects of market volatilities on SK Chemicals 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 SK Chemicals with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Chemicals and Kosdaq Composite.
Diversification Opportunities for SK Chemicals and Kosdaq Composite
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 285130 and Kosdaq is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding SK Chemicals 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 SK Chemicals 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 SK Chemicals 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 SK Chemicals i.e., SK Chemicals and Kosdaq Composite go up and down completely randomly.
Pair Corralation between SK Chemicals and Kosdaq Composite
Assuming the 90 days trading horizon SK Chemicals Co is expected to under-perform the Kosdaq Composite. In addition to that, SK Chemicals is 1.33 times more volatile than Kosdaq Composite Index. It trades about -0.32 of its total potential returns per unit of risk. Kosdaq Composite Index is currently generating about -0.2 per unit of volatility. If you would invest 72,905 in Kosdaq Composite Index on September 2, 2024 and sell it today you would lose (5,086) from holding Kosdaq Composite Index or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Chemicals Co vs. Kosdaq Composite Index
Performance |
| Timeline |
SK Chemicals and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
SK Chemicals Co
Pair trading matchups for SK Chemicals
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with SK Chemicals and Kosdaq Composite
The main advantage of trading using opposite SK Chemicals and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Chemicals 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.| SK Chemicals vs. LG Chemicals | SK Chemicals vs. POSCO Holdings | SK Chemicals vs. Hanwha Solutions | SK Chemicals vs. Hyundai Steel |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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