Correlation Between Kosdaq Composite and Sung Bo
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By analyzing existing cross correlation between Kosdaq Composite Index and Sung Bo Chemicals, you can compare the effects of market volatilities on Kosdaq Composite and Sung Bo 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 Sung Bo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Sung Bo.
Diversification Opportunities for Kosdaq Composite and Sung Bo
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Sung is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Sung Bo Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sung Bo Chemicals 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 Sung Bo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sung Bo Chemicals has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Sung Bo go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Sung Bo
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.91 times more return on investment than Sung Bo. However, Kosdaq Composite Index is 1.1 times less risky than Sung Bo. It trades about 0.01 of its potential returns per unit of risk. Sung Bo Chemicals is currently generating about -0.01 per unit of risk. If you would invest 68,894 in Kosdaq Composite Index on August 28, 2024 and sell it today you would earn a total of 937.00 from holding Kosdaq Composite Index or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Sung Bo Chemicals
Performance |
| Timeline |
Kosdaq Composite and Sung Bo Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Sung Bo Chemicals
Pair trading matchups for Sung Bo
Pair Trading with Kosdaq Composite and Sung Bo
The main advantage of trading using opposite Kosdaq Composite and Sung Bo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Sung Bo 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 Sung Bo will offset losses from the drop in Sung Bo'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 |
| Sung Bo vs. AptaBio Therapeutics | Sung Bo vs. Daewoo SBI SPAC | Sung Bo vs. Dream Security co | Sung Bo 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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