Correlation Between Kosdaq Composite and Stic Investments
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By analyzing existing cross correlation between Kosdaq Composite Index and Stic Investments, you can compare the effects of market volatilities on Kosdaq Composite and Stic Investments 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 Stic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Stic Investments.
Diversification Opportunities for Kosdaq Composite and Stic Investments
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and Stic is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Stic Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stic Investments 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 Stic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stic Investments has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Stic Investments go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Stic Investments
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Stic Investments. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.29 times less risky than Stic Investments. The index trades about -0.23 of its potential returns per unit of risk. The Stic Investments is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 808,000 in Stic Investments on August 31, 2024 and sell it today you would earn a total of 20,000 from holding Stic Investments or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Stic Investments
Performance |
| Timeline |
Kosdaq Composite and Stic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Stic Investments
Pair trading matchups for Stic Investments
Pair Trading with Kosdaq Composite and Stic Investments
The main advantage of trading using opposite Kosdaq Composite and Stic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Stic Investments 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 Stic Investments will offset losses from the drop in Stic Investments' long position.| Kosdaq Composite vs. LG Chemicals | Kosdaq Composite vs. Sempio Foods Co | Kosdaq Composite vs. SK Chemicals Co | Kosdaq Composite vs. Korea Shipbuilding Offshore |
| Stic Investments vs. Dongsin Engineering Construction | Stic Investments vs. Doosan Fuel Cell | Stic Investments vs. Daishin Balance 1 | Stic Investments vs. Total Soft Bank |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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