Correlation Between Kosdaq Composite and Hotel Shilla
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By analyzing existing cross correlation between Kosdaq Composite Index and Hotel Shilla Co, you can compare the effects of market volatilities on Kosdaq Composite and Hotel Shilla 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 Hotel Shilla. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Hotel Shilla.
Diversification Opportunities for Kosdaq Composite and Hotel Shilla
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Hotel is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Hotel Shilla Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Shilla 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 Hotel Shilla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Shilla has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Hotel Shilla go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Hotel Shilla
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 1.64 times more return on investment than Hotel Shilla. However, Kosdaq Composite is 1.64 times more volatile than Hotel Shilla Co. It trades about 0.27 of its potential returns per unit of risk. Hotel Shilla Co is currently generating about 0.01 per unit of risk. If you would invest 67,592 in Kosdaq Composite Index on October 12, 2024 and sell it today you would earn a total of 4,760 from holding Kosdaq Composite Index or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Hotel Shilla Co
Performance |
| Timeline |
Kosdaq Composite and Hotel Shilla Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Hotel Shilla Co
Pair trading matchups for Hotel Shilla
Pair Trading with Kosdaq Composite and Hotel Shilla
The main advantage of trading using opposite Kosdaq Composite and Hotel Shilla positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Hotel Shilla 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 Hotel Shilla will offset losses from the drop in Hotel Shilla's long position.| Kosdaq Composite vs. Nam Hwa Construction | Kosdaq Composite vs. Seohee Construction Co | Kosdaq Composite vs. Alton Sports CoLtd | Kosdaq Composite vs. Tamul Multimedia Co |
| Hotel Shilla vs. Inzi Display CoLtd | Hotel Shilla vs. Seoyon Topmetal Co | Hotel Shilla vs. Daejung Chemicals Metals | Hotel Shilla vs. LEENO Industrial |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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