Correlation Between Kosdaq Composite and LG Uplus
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By analyzing existing cross correlation between Kosdaq Composite Index and LG Uplus, you can compare the effects of market volatilities on Kosdaq Composite and LG Uplus 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 LG Uplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and LG Uplus.
Diversification Opportunities for Kosdaq Composite and LG Uplus
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kosdaq and 032640 is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and LG Uplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Uplus 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 LG Uplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Uplus has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and LG Uplus go up and down completely randomly.
Pair Corralation between Kosdaq Composite and LG Uplus
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 1.42 times more return on investment than LG Uplus. However, Kosdaq Composite is 1.42 times more volatile than LG Uplus. It trades about 0.16 of its potential returns per unit of risk. LG Uplus is currently generating about -0.22 per unit of risk. If you would invest 66,133 in Kosdaq Composite Index on October 7, 2024 and sell it today you would earn a total of 4,443 from holding Kosdaq Composite Index or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. LG Uplus
Performance |
| Timeline |
Kosdaq Composite and LG Uplus Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
LG Uplus
Pair trading matchups for LG Uplus
Pair Trading with Kosdaq Composite and LG Uplus
The main advantage of trading using opposite Kosdaq Composite and LG Uplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, LG Uplus 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 LG Uplus will offset losses from the drop in LG Uplus' long position.| Kosdaq Composite vs. Atinum Investment Co | Kosdaq Composite vs. DB Insurance Co | Kosdaq Composite vs. Shinsegae Engineering Construction | Kosdaq Composite vs. Woori Technology Investment |
| LG Uplus vs. Kyung Chang Industrial | LG Uplus vs. Songwon Industrial Co | LG Uplus vs. Kolon Plastics | LG Uplus vs. TOPMATERIAL LTD |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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