Correlation Between Kosdaq Composite and Namhae Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kosdaq Composite Index and Namhae Chemical, you can compare the effects of market volatilities on Kosdaq Composite and Namhae 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 Namhae Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Namhae Chemical.
Diversification Opportunities for Kosdaq Composite and Namhae Chemical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Namhae is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Namhae Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namhae 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 Namhae Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namhae Chemical has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Namhae Chemical go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Namhae Chemical
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Namhae Chemical. In addition to that, Kosdaq Composite is 1.58 times more volatile than Namhae Chemical. It trades about -0.25 of its total potential returns per unit of risk. Namhae Chemical is currently generating about -0.12 per unit of volatility. If you would invest 653,000 in Namhae Chemical on September 1, 2024 and sell it today you would lose (18,000) from holding Namhae Chemical or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Namhae Chemical
Performance |
| Timeline |
Kosdaq Composite and Namhae Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Namhae Chemical
Pair trading matchups for Namhae Chemical
Pair Trading with Kosdaq Composite and Namhae Chemical
The main advantage of trading using opposite Kosdaq Composite and Namhae Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Namhae 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 Namhae Chemical will offset losses from the drop in Namhae Chemical'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 |
| Namhae Chemical vs. LG Chemicals | Namhae Chemical vs. POSCO Holdings | Namhae Chemical vs. Hanwha Solutions | Namhae Chemical vs. Hyundai Steel |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |