Correlation Between Kosdaq Composite and NH Investment
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By analyzing existing cross correlation between Kosdaq Composite Index and NH Investment Securities, you can compare the effects of market volatilities on Kosdaq Composite and NH Investment 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 NH Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and NH Investment.
Diversification Opportunities for Kosdaq Composite and NH Investment
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kosdaq and 005940 is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and NH Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Investment Securities 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 NH Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Investment Securities has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and NH Investment go up and down completely randomly.
Pair Corralation between Kosdaq Composite and NH Investment
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the NH Investment. In addition to that, Kosdaq Composite is 1.15 times more volatile than NH Investment Securities. It trades about -0.19 of its total potential returns per unit of risk. NH Investment Securities is currently generating about 0.0 per unit of volatility. If you would invest 1,366,000 in NH Investment Securities on September 12, 2024 and sell it today you would lose (4,000) from holding NH Investment Securities or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. NH Investment Securities
Performance |
| Timeline |
Kosdaq Composite and NH Investment Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
NH Investment Securities
Pair trading matchups for NH Investment
Pair Trading with Kosdaq Composite and NH Investment
The main advantage of trading using opposite Kosdaq Composite and NH Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, NH Investment 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 NH Investment will offset losses from the drop in NH Investment's long position.| Kosdaq Composite vs. Daishin Information Communications | Kosdaq Composite vs. Nh Investment And | Kosdaq Composite vs. Korea Computer | Kosdaq Composite vs. DSC Investment |
| NH Investment vs. KB Financial Group | NH Investment vs. Shinhan Financial Group | NH Investment vs. Hana Financial | NH Investment vs. Woori Financial Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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