Correlation Between Kosdaq Composite and Hanwha InvestmentSecuri
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By analyzing existing cross correlation between Kosdaq Composite Index and Hanwha InvestmentSecurities Co, you can compare the effects of market volatilities on Kosdaq Composite and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Hanwha InvestmentSecuri.
Diversification Opportunities for Kosdaq Composite and Hanwha InvestmentSecuri
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kosdaq and Hanwha is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Hanwha InvestmentSecurities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha InvestmentSecuri has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Hanwha InvestmentSecuri go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Hanwha InvestmentSecuri
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Hanwha InvestmentSecuri. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 4.9 times less risky than Hanwha InvestmentSecuri. The index trades about -0.19 of its potential returns per unit of risk. The Hanwha InvestmentSecurities Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 688,000 in Hanwha InvestmentSecurities Co on August 29, 2024 and sell it today you would earn a total of 42,000 from holding Hanwha InvestmentSecurities Co or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Hanwha InvestmentSecurities Co
Performance |
| Timeline |
Kosdaq Composite and Hanwha InvestmentSecuri Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Hanwha InvestmentSecurities Co
Pair trading matchups for Hanwha InvestmentSecuri
Pair Trading with Kosdaq Composite and Hanwha InvestmentSecuri
The main advantage of trading using opposite Kosdaq Composite and Hanwha InvestmentSecuri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri will offset losses from the drop in Hanwha InvestmentSecuri'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 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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