Correlation Between Kosdaq Composite and Hwangkum Steel
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By analyzing existing cross correlation between Kosdaq Composite Index and Hwangkum Steel Technology, you can compare the effects of market volatilities on Kosdaq Composite and Hwangkum Steel 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 Hwangkum Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Hwangkum Steel.
Diversification Opportunities for Kosdaq Composite and Hwangkum Steel
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Hwangkum is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Hwangkum Steel Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hwangkum Steel Technology 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 Hwangkum Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hwangkum Steel Technology has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Hwangkum Steel go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Hwangkum Steel
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Hwangkum Steel. In addition to that, Kosdaq Composite is 1.32 times more volatile than Hwangkum Steel Technology. It trades about -0.19 of its total potential returns per unit of risk. Hwangkum Steel Technology is currently generating about -0.15 per unit of volatility. If you would invest 529,000 in Hwangkum Steel Technology on August 29, 2024 and sell it today you would lose (21,000) from holding Hwangkum Steel Technology or give up 3.97% 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. Hwangkum Steel Technology
Performance |
| Timeline |
Kosdaq Composite and Hwangkum Steel Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Hwangkum Steel Technology
Pair trading matchups for Hwangkum Steel
Pair Trading with Kosdaq Composite and Hwangkum Steel
The main advantage of trading using opposite Kosdaq Composite and Hwangkum Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Hwangkum Steel 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 Hwangkum Steel will offset losses from the drop in Hwangkum Steel's long position.| Kosdaq Composite vs. Shinil Electronics Co | Kosdaq Composite vs. Sungdo Engineering Construction | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. ENERGYMACHINERY KOREA CoLtd |
| Hwangkum Steel vs. AptaBio Therapeutics | Hwangkum Steel vs. Daewoo SBI SPAC | Hwangkum Steel vs. Dream Security co | Hwangkum Steel vs. Microfriend |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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