Correlation Between Kosdaq Composite and Samsung SDI
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By analyzing existing cross correlation between Kosdaq Composite Index and Samsung SDI, you can compare the effects of market volatilities on Kosdaq Composite and Samsung SDI 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 Samsung SDI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Samsung SDI.
Diversification Opportunities for Kosdaq Composite and Samsung SDI
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Samsung is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Samsung SDI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung SDI 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 Samsung SDI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung SDI has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Samsung SDI go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Samsung SDI
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.46 times more return on investment than Samsung SDI. However, Kosdaq Composite Index is 2.17 times less risky than Samsung SDI. It trades about -0.16 of its potential returns per unit of risk. Samsung SDI is currently generating about -0.28 per unit of risk. If you would invest 74,048 in Kosdaq Composite Index on August 28, 2024 and sell it today you would lose (4,217) from holding Kosdaq Composite Index or give up 5.69% 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. Samsung SDI
Performance |
| Timeline |
Kosdaq Composite and Samsung SDI Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Samsung SDI
Pair trading matchups for Samsung SDI
Pair Trading with Kosdaq Composite and Samsung SDI
The main advantage of trading using opposite Kosdaq Composite and Samsung SDI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Samsung SDI 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 Samsung SDI will offset losses from the drop in Samsung SDI'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 |
| Samsung SDI vs. Korea Real Estate | Samsung SDI vs. Korea Ratings Co | Samsung SDI vs. IQuest Co | Samsung SDI vs. Wonbang Tech 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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