Correlation Between Kosdaq Composite and KT Hitel
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By analyzing existing cross correlation between Kosdaq Composite Index and KT Hitel, you can compare the effects of market volatilities on Kosdaq Composite and KT Hitel 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 KT Hitel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and KT Hitel.
Diversification Opportunities for Kosdaq Composite and KT Hitel
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and 036030 is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and KT Hitel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Hitel 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 KT Hitel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Hitel has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and KT Hitel go up and down completely randomly.
Pair Corralation between Kosdaq Composite and KT Hitel
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.6 times more return on investment than KT Hitel. However, Kosdaq Composite Index is 1.67 times less risky than KT Hitel. It trades about -0.04 of its potential returns per unit of risk. KT Hitel is currently generating about -0.05 per unit of risk. If you would invest 81,320 in Kosdaq Composite Index on September 2, 2024 and sell it today you would lose (13,501) from holding Kosdaq Composite Index or give up 16.6% 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. KT Hitel
Performance |
| Timeline |
Kosdaq Composite and KT Hitel Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
KT Hitel
Pair trading matchups for KT Hitel
Pair Trading with Kosdaq Composite and KT Hitel
The main advantage of trading using opposite Kosdaq Composite and KT Hitel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, KT Hitel 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 KT Hitel will offset losses from the drop in KT Hitel's long position.| Kosdaq Composite vs. DONGKUK TED METAL | Kosdaq Composite vs. Pungguk Ethanol Industrial | Kosdaq Composite vs. Duksan Hi Metal | Kosdaq Composite vs. Daiyang Metal Co |
| KT Hitel vs. Samsung Electronics Co | KT Hitel vs. Samsung Electronics Co | KT Hitel vs. LG Energy Solution | KT Hitel vs. SK Hynix |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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