Correlation Between Seah Steel and Kosdaq Composite
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By analyzing existing cross correlation between Seah Steel Corp and Kosdaq Composite Index, you can compare the effects of market volatilities on Seah 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 Seah Steel with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seah Steel and Kosdaq Composite.
Diversification Opportunities for Seah Steel and Kosdaq Composite
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Seah and Kosdaq is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Seah Steel Corp 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 Seah 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 Seah Steel Corp 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 Seah Steel i.e., Seah Steel and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Seah Steel and Kosdaq Composite
Assuming the 90 days trading horizon Seah Steel Corp is expected to generate 0.85 times more return on investment than Kosdaq Composite. However, Seah Steel Corp is 1.17 times less risky than Kosdaq Composite. It trades about -0.03 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about -0.06 per unit of risk. If you would invest 12,950,000 in Seah Steel Corp on October 17, 2024 and sell it today you would lose (940,000) from holding Seah Steel Corp or give up 7.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seah Steel Corp vs. Kosdaq Composite Index
Performance |
| Timeline |
Seah Steel and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Seah Steel Corp
Pair trading matchups for Seah Steel
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Seah Steel and Kosdaq Composite
The main advantage of trading using opposite Seah Steel and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seah 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.| Seah Steel vs. Choil Aluminum | Seah Steel vs. Shin Steel Co | Seah Steel vs. Samhyun Steel Co | Seah Steel vs. Kbi Metal Co |
| Kosdaq Composite vs. Sewoon Medical Co | Kosdaq Composite vs. Seah Steel Corp | Kosdaq Composite vs. Hyundai Engineering Construction | Kosdaq Composite vs. KCC Engineering Construction |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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