Correlation Between Kosdaq Composite and Korean Reinsurance
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By analyzing existing cross correlation between Kosdaq Composite Index and Korean Reinsurance Co, you can compare the effects of market volatilities on Kosdaq Composite and Korean Reinsurance 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 Korean Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Korean Reinsurance.
Diversification Opportunities for Kosdaq Composite and Korean Reinsurance
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and Korean is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Korean Reinsurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Reinsurance 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 Korean Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Reinsurance has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Korean Reinsurance go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Korean Reinsurance
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 101.64 times less return on investment than Korean Reinsurance. But when comparing it to its historical volatility, Kosdaq Composite Index is 1.03 times less risky than Korean Reinsurance. It trades about 0.0 of its potential returns per unit of risk. Korean Reinsurance Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 510,449 in Korean Reinsurance Co on November 27, 2024 and sell it today you would earn a total of 311,551 from holding Korean Reinsurance Co or generate 61.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Korean Reinsurance Co
Performance |
| Timeline |
Kosdaq Composite and Korean Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Korean Reinsurance Co
Pair trading matchups for Korean Reinsurance
Pair Trading with Kosdaq Composite and Korean Reinsurance
The main advantage of trading using opposite Kosdaq Composite and Korean Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Korean Reinsurance 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 Korean Reinsurance will offset losses from the drop in Korean Reinsurance's long position.| Kosdaq Composite vs. Seoul Food Industrial | Kosdaq Composite vs. Organic Special Pet | Kosdaq Composite vs. Hyundai Green Food | Kosdaq Composite vs. Namyang Dairy |
| Korean Reinsurance vs. Worldex Industry Trading | Korean Reinsurance vs. E Investment Development | Korean Reinsurance vs. Nh Investment And | Korean Reinsurance vs. SBI Investment KOREA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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