Correlation Between Kosdaq Composite and SAMRYOONG CoLtd
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By analyzing existing cross correlation between Kosdaq Composite Index and SAMRYOONG CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and SAMRYOONG CoLtd 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 SAMRYOONG CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and SAMRYOONG CoLtd.
Diversification Opportunities for Kosdaq Composite and SAMRYOONG CoLtd
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and SAMRYOONG is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and SAMRYOONG CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMRYOONG CoLtd 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 SAMRYOONG CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMRYOONG CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and SAMRYOONG CoLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and SAMRYOONG CoLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 1.21 times more return on investment than SAMRYOONG CoLtd. However, Kosdaq Composite is 1.21 times more volatile than SAMRYOONG CoLtd. It trades about -0.25 of its potential returns per unit of risk. SAMRYOONG CoLtd is currently generating about -0.36 per unit of risk. If you would invest 74,306 in Kosdaq Composite Index on September 1, 2024 and sell it today you would lose (6,444) from holding Kosdaq Composite Index or give up 8.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kosdaq Composite Index vs. SAMRYOONG CoLtd
Performance |
| Timeline |
Kosdaq Composite and SAMRYOONG CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
SAMRYOONG CoLtd
Pair trading matchups for SAMRYOONG CoLtd
Pair Trading with Kosdaq Composite and SAMRYOONG CoLtd
The main advantage of trading using opposite Kosdaq Composite and SAMRYOONG CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, SAMRYOONG CoLtd 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 SAMRYOONG CoLtd will offset losses from the drop in SAMRYOONG CoLtd'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 |
| SAMRYOONG CoLtd vs. Union Materials Corp | SAMRYOONG CoLtd vs. INNOX Advanced Materials | SAMRYOONG CoLtd vs. Jeju Semiconductor Corp | SAMRYOONG CoLtd vs. Ecoplastic |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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