Correlation Between Kosdaq Composite and Youngsin Metal
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By analyzing existing cross correlation between Kosdaq Composite Index and Youngsin Metal Industrial, you can compare the effects of market volatilities on Kosdaq Composite and Youngsin Metal 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 Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Youngsin Metal.
Diversification Opportunities for Kosdaq Composite and Youngsin Metal
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Youngsin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Youngsin Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngsin Metal Industrial 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 Youngsin Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngsin Metal Industrial has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Youngsin Metal go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Youngsin Metal
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.74 times more return on investment than Youngsin Metal. However, Kosdaq Composite Index is 1.35 times less risky than Youngsin Metal. It trades about -0.17 of its potential returns per unit of risk. Youngsin Metal Industrial is currently generating about -0.62 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. Youngsin Metal Industrial
Performance |
| Timeline |
Kosdaq Composite and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Youngsin Metal Industrial
Pair trading matchups for Youngsin Metal
Pair Trading with Kosdaq Composite and Youngsin Metal
The main advantage of trading using opposite Kosdaq Composite and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Youngsin Metal 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 Youngsin Metal will offset losses from the drop in Youngsin Metal's long position.| Kosdaq Composite vs. Daejung Chemicals Metals | Kosdaq Composite vs. LG Household Healthcare | Kosdaq Composite vs. Cuckoo Homesys Co | Kosdaq Composite vs. Osang Healthcare Co,Ltd |
| Youngsin Metal vs. Samsung Electronics Co | Youngsin Metal vs. Samsung Electronics Co | Youngsin Metal vs. Hyundai Motor Co | Youngsin Metal vs. Hyundai Motor |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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