Correlation Between Kosdaq Composite and SH Energy
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By analyzing existing cross correlation between Kosdaq Composite Index and SH Energy Chemical, you can compare the effects of market volatilities on Kosdaq Composite and SH Energy 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 Kosdaq Composite with a short position of SH Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and SH Energy.
Diversification Opportunities for Kosdaq Composite and SH Energy
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kosdaq and 002360 is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and SH Energy Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SH Energy Chemical and Kosdaq Composite 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 Kosdaq Composite Index are associated (or correlated) with SH Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SH Energy Chemical has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and SH Energy go up and down completely randomly.
Pair Corralation between Kosdaq Composite and SH Energy
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the SH Energy. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 2.24 times less risky than SH Energy. The index trades about -0.19 of its potential returns per unit of risk. The SH Energy Chemical is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 50,900 in SH Energy Chemical on August 29, 2024 and sell it today you would earn a total of 4,100 from holding SH Energy Chemical or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kosdaq Composite Index vs. SH Energy Chemical
Performance |
| Timeline |
Kosdaq Composite and SH Energy Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
SH Energy Chemical
Pair trading matchups for SH Energy
Pair Trading with Kosdaq Composite and SH Energy
The main advantage of trading using opposite Kosdaq Composite and SH Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, SH Energy 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 SH Energy will offset losses from the drop in SH Energy's long position.| Kosdaq Composite vs. Shinil Electronics Co | Kosdaq Composite vs. Sungdo Engineering Construction | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. ENERGYMACHINERY KOREA CoLtd |
| SH Energy vs. AptaBio Therapeutics | SH Energy vs. Daewoo SBI SPAC | SH Energy vs. Dream Security co | SH Energy vs. Microfriend |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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