Correlation Between Kosdaq Composite and Sungmoon Electronics
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By analyzing existing cross correlation between Kosdaq Composite Index and Sungmoon Electronics Co, you can compare the effects of market volatilities on Kosdaq Composite and Sungmoon Electronics 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 Sungmoon Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Sungmoon Electronics.
Diversification Opportunities for Kosdaq Composite and Sungmoon Electronics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and Sungmoon is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Sungmoon Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungmoon Electronics 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 Sungmoon Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungmoon Electronics has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Sungmoon Electronics go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Sungmoon Electronics
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Sungmoon Electronics. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 2.91 times less risky than Sungmoon Electronics. The index trades about -0.24 of its potential returns per unit of risk. The Sungmoon Electronics Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 490,500 in Sungmoon Electronics Co on August 25, 2024 and sell it today you would lose (25,500) from holding Sungmoon Electronics Co or give up 5.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Sungmoon Electronics Co
Performance |
| Timeline |
Kosdaq Composite and Sungmoon Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Sungmoon Electronics Co
Pair trading matchups for Sungmoon Electronics
Pair Trading with Kosdaq Composite and Sungmoon Electronics
The main advantage of trading using opposite Kosdaq Composite and Sungmoon Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Sungmoon Electronics 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 Sungmoon Electronics will offset losses from the drop in Sungmoon Electronics' long position.| Kosdaq Composite vs. Nam Hwa Construction | Kosdaq Composite vs. Dongbang Ship Machinery | Kosdaq Composite vs. SEOJEON ELECTRIC MACHINERY | Kosdaq Composite vs. Heungkuk Metaltech CoLtd |
| Sungmoon Electronics vs. SK IE Technology | Sungmoon Electronics vs. DAEDUCK ELECTRONICS CoLtd | Sungmoon Electronics vs. Iljin Display |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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