Correlation Between Kosdaq Composite and KCC
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By analyzing existing cross correlation between Kosdaq Composite Index and KCC Corporation, you can compare the effects of market volatilities on Kosdaq Composite and KCC 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 KCC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and KCC.
Diversification Opportunities for Kosdaq Composite and KCC
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and KCC is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and KCC Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCC Corporation 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 KCC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCC Corporation has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and KCC go up and down completely randomly.
Pair Corralation between Kosdaq Composite and KCC
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.69 times more return on investment than KCC. However, Kosdaq Composite Index is 1.44 times less risky than KCC. It trades about -0.19 of its potential returns per unit of risk. KCC Corporation is currently generating about -0.33 per unit of risk. If you would invest 77,449 in Kosdaq Composite Index on August 28, 2024 and sell it today you would lose (8,148) from holding Kosdaq Composite Index or give up 10.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. KCC Corp.
Performance |
| Timeline |
Kosdaq Composite and KCC Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
KCC Corporation
Pair trading matchups for KCC
Pair Trading with Kosdaq Composite and KCC
The main advantage of trading using opposite Kosdaq Composite and KCC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, KCC 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 KCC will offset losses from the drop in KCC'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 |
| KCC vs. Hansol Homedeco Co | KCC vs. LG Electronics Pfd | KCC vs. Hyunwoo Industrial Co | KCC vs. Sangshin Electronics 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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