Correlation Between Kosdaq Composite and Humax Holdings
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By analyzing existing cross correlation between Kosdaq Composite Index and Humax Holdings Co, you can compare the effects of market volatilities on Kosdaq Composite and Humax Holdings 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 Humax Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Humax Holdings.
Diversification Opportunities for Kosdaq Composite and Humax Holdings
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Humax is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Humax Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humax Holdings 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 Humax Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humax Holdings has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Humax Holdings go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Humax Holdings
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.51 times more return on investment than Humax Holdings. However, Kosdaq Composite Index is 1.97 times less risky than Humax Holdings. It trades about -0.07 of its potential returns per unit of risk. Humax Holdings Co is currently generating about -0.45 per unit of risk. If you would invest 71,052 in Kosdaq Composite Index on September 13, 2024 and sell it today you would lose (2,717) from holding Kosdaq Composite Index or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Humax Holdings Co
Performance |
| Timeline |
Kosdaq Composite and Humax Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Humax Holdings Co
Pair trading matchups for Humax Holdings
Pair Trading with Kosdaq Composite and Humax Holdings
The main advantage of trading using opposite Kosdaq Composite and Humax Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Humax Holdings 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 Humax Holdings will offset losses from the drop in Humax Holdings' long position.| Kosdaq Composite vs. Nice Information Telecommunication | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. Korea Information Communications | Kosdaq Composite vs. Mobile Appliance |
| Humax Holdings vs. Seoul Food Industrial | Humax Holdings vs. ABCO Electronics Co | Humax Holdings vs. Lotte Chilsung Beverage | Humax Holdings vs. CKH Food Health |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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