Correlation Between Kosdaq Composite and Hansol Chemical
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By analyzing existing cross correlation between Kosdaq Composite Index and Hansol Chemical Co, you can compare the effects of market volatilities on Kosdaq Composite and Hansol 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 Hansol Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Hansol Chemical.
Diversification Opportunities for Kosdaq Composite and Hansol Chemical
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kosdaq and Hansol is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Hansol Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol 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 Hansol Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Chemical has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Hansol Chemical go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Hansol Chemical
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 3.99 times less return on investment than Hansol Chemical. But when comparing it to its historical volatility, Kosdaq Composite Index is 2.21 times less risky than Hansol Chemical. It trades about 0.27 of its potential returns per unit of risk. Hansol Chemical Co is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 9,270,000 in Hansol Chemical Co on November 27, 2024 and sell it today you would earn a total of 2,340,000 from holding Hansol Chemical Co or generate 25.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Hansol Chemical Co
Performance |
| Timeline |
Kosdaq Composite and Hansol Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Hansol Chemical Co
Pair trading matchups for Hansol Chemical
Pair Trading with Kosdaq Composite and Hansol Chemical
The main advantage of trading using opposite Kosdaq Composite and Hansol Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Hansol 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 Hansol Chemical will offset losses from the drop in Hansol 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 |
| Hansol Chemical vs. AptaBio Therapeutics | Hansol Chemical vs. Daewoo SBI SPAC | Hansol Chemical vs. Dream Security co | Hansol Chemical vs. Microfriend |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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