Correlation Between Kosdaq Composite and HMM
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By analyzing existing cross correlation between Kosdaq Composite Index and HMM Co, you can compare the effects of market volatilities on Kosdaq Composite and HMM 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 HMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and HMM.
Diversification Opportunities for Kosdaq Composite and HMM
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kosdaq and HMM is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and HMM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMM Co 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 HMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMM Co has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and HMM go up and down completely randomly.
Pair Corralation between Kosdaq Composite and HMM
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the HMM. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.9 times less risky than HMM. The index trades about -0.25 of its potential returns per unit of risk. The HMM Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,712,000 in HMM Co on September 1, 2024 and sell it today you would earn a total of 84,000 from holding HMM Co or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. HMM Co
Performance |
| Timeline |
Kosdaq Composite and HMM Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
HMM Co
Pair trading matchups for HMM
Pair Trading with Kosdaq Composite and HMM
The main advantage of trading using opposite Kosdaq Composite and HMM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, HMM 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 HMM will offset losses from the drop in HMM's long position.| Kosdaq Composite vs. Golden Bridge Investment | Kosdaq Composite vs. Lotte Data Communication | Kosdaq Composite vs. E Investment Development | Kosdaq Composite vs. Stic Investments |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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