Correlation Between Kosdaq Composite and Asiana Airlines
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By analyzing existing cross correlation between Kosdaq Composite Index and Asiana Airlines, you can compare the effects of market volatilities on Kosdaq Composite and Asiana Airlines 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 Asiana Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Asiana Airlines.
Diversification Opportunities for Kosdaq Composite and Asiana Airlines
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kosdaq and Asiana is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Asiana Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiana Airlines 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 Asiana Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiana Airlines has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Asiana Airlines go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Asiana Airlines
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Asiana Airlines. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.25 times less risky than Asiana Airlines. The index trades about -0.04 of its potential returns per unit of risk. The Asiana Airlines is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,258,000 in Asiana Airlines on September 1, 2024 and sell it today you would lose (184,000) from holding Asiana Airlines or give up 14.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Asiana Airlines
Performance |
| Timeline |
Kosdaq Composite and Asiana Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Asiana Airlines
Pair trading matchups for Asiana Airlines
Pair Trading with Kosdaq Composite and Asiana Airlines
The main advantage of trading using opposite Kosdaq Composite and Asiana Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Asiana Airlines 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 Asiana Airlines will offset losses from the drop in Asiana Airlines' 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 |
| Asiana Airlines vs. Barunson Entertainment Arts | Asiana Airlines vs. DC Media Co | Asiana Airlines vs. ChipsMedia | Asiana Airlines vs. SBI Investment KOREA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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