Correlation Between Kosdaq Composite and SK Holdings
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By analyzing existing cross correlation between Kosdaq Composite Index and SK Holdings Co, you can compare the effects of market volatilities on Kosdaq Composite and SK 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 SK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and SK Holdings.
Diversification Opportunities for Kosdaq Composite and SK Holdings
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and 034730 is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and SK Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK 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 SK Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Holdings has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and SK Holdings go up and down completely randomly.
Pair Corralation between Kosdaq Composite and SK Holdings
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the SK Holdings. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.25 times less risky than SK Holdings. The index trades about -0.25 of its potential returns per unit of risk. The SK Holdings Co is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 14,820,000 in SK Holdings Co on September 1, 2024 and sell it today you would lose (1,160,000) from holding SK Holdings Co or give up 7.83% 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. SK Holdings Co
Performance |
| Timeline |
Kosdaq Composite and SK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
SK Holdings Co
Pair trading matchups for SK Holdings
Pair Trading with Kosdaq Composite and SK Holdings
The main advantage of trading using opposite Kosdaq Composite and SK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, SK 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 SK Holdings will offset losses from the drop in SK Holdings' 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 |
| SK Holdings vs. Pungguk Ethanol Industrial | SK Holdings vs. Haesung Industrial Co | SK Holdings vs. Nice Information Telecommunication | SK Holdings vs. Automobile Pc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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