Correlation Between Kosdaq Composite and Kukdo Chemical
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By analyzing existing cross correlation between Kosdaq Composite Index and Kukdo Chemical Co, you can compare the effects of market volatilities on Kosdaq Composite and Kukdo Chemical 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 Kukdo Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Kukdo Chemical.
Diversification Opportunities for Kosdaq Composite and Kukdo Chemical
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Kukdo is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Kukdo Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukdo Chemical 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 Kukdo Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukdo Chemical has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Kukdo Chemical go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Kukdo Chemical
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 2.89 times less return on investment than Kukdo Chemical. But when comparing it to its historical volatility, Kosdaq Composite Index is 1.98 times less risky than Kukdo Chemical. It trades about 0.27 of its potential returns per unit of risk. Kukdo Chemical Co is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 2,995,000 in Kukdo Chemical Co on November 27, 2024 and sell it today you would earn a total of 530,000 from holding Kukdo Chemical Co or generate 17.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Kukdo Chemical Co
Performance |
| Timeline |
Kosdaq Composite and Kukdo Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Kukdo Chemical Co
Pair trading matchups for Kukdo Chemical
Pair Trading with Kosdaq Composite and Kukdo Chemical
The main advantage of trading using opposite Kosdaq Composite and Kukdo Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Kukdo Chemical 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 Kukdo Chemical will offset losses from the drop in Kukdo Chemical'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 |
| Kukdo Chemical vs. Seoul Electronics Telecom | Kukdo Chemical vs. Hotel Shilla Co | Kukdo Chemical vs. Korean Air Lines | Kukdo Chemical vs. Namhae Chemical |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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