Correlation Between Kosdaq Composite and Kumho Petro
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By analyzing existing cross correlation between Kosdaq Composite Index and Kumho Petro Chemical, you can compare the effects of market volatilities on Kosdaq Composite and Kumho Petro 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 Kumho Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Kumho Petro.
Diversification Opportunities for Kosdaq Composite and Kumho Petro
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Kumho is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Kumho Petro Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kumho Petro 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 Kumho Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kumho Petro Chemical has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Kumho Petro go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Kumho Petro
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.77 times more return on investment than Kumho Petro. However, Kosdaq Composite Index is 1.3 times less risky than Kumho Petro. It trades about 0.1 of its potential returns per unit of risk. Kumho Petro Chemical is currently generating about -0.06 per unit of risk. If you would invest 69,853 in Kosdaq Composite Index on October 17, 2024 and sell it today you would earn a total of 1,698 from holding Kosdaq Composite Index or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Kumho Petro Chemical
Performance |
| Timeline |
Kosdaq Composite and Kumho Petro Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Kumho Petro Chemical
Pair trading matchups for Kumho Petro
Pair Trading with Kosdaq Composite and Kumho Petro
The main advantage of trading using opposite Kosdaq Composite and Kumho Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Kumho Petro 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 Kumho Petro will offset losses from the drop in Kumho Petro's long position.| Kosdaq Composite vs. Sewoon Medical Co | Kosdaq Composite vs. Seah Steel Corp | Kosdaq Composite vs. Hyundai Engineering Construction | Kosdaq Composite vs. KCC Engineering Construction |
| Kumho Petro vs. System and Application | Kumho Petro vs. KakaoBank Corp | Kumho Petro vs. Settlebank | Kumho Petro vs. Lotte Data Communication |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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