Correlation Between Hyosung Advanced and Kosdaq Composite
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By analyzing existing cross correlation between Hyosung Advanced Materials and Kosdaq Composite Index, you can compare the effects of market volatilities on Hyosung Advanced 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 Hyosung Advanced with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyosung Advanced and Kosdaq Composite.
Diversification Opportunities for Hyosung Advanced and Kosdaq Composite
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyosung and Kosdaq is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hyosung Advanced Materials 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 Hyosung Advanced 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 Hyosung Advanced Materials 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 Hyosung Advanced i.e., Hyosung Advanced and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Hyosung Advanced and Kosdaq Composite
Assuming the 90 days trading horizon Hyosung Advanced is expected to generate 1.1 times less return on investment than Kosdaq Composite. In addition to that, Hyosung Advanced is 1.59 times more volatile than Kosdaq Composite Index. It trades about 0.06 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyosung Advanced Materials vs. Kosdaq Composite Index
Performance |
| Timeline |
Hyosung Advanced and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Hyosung Advanced Materials
Pair trading matchups for Hyosung Advanced
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Hyosung Advanced and Kosdaq Composite
The main advantage of trading using opposite Hyosung Advanced and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyosung Advanced 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.| Hyosung Advanced vs. Guyoung Technology Co | Hyosung Advanced vs. Daishin Information Communications | Hyosung Advanced vs. Dongbang Transport Logistics | Hyosung Advanced vs. Automobile Pc |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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