Correlation Between Kosdaq Composite and Gyeongnam Steel
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By analyzing existing cross correlation between Kosdaq Composite Index and Gyeongnam Steel Co, you can compare the effects of market volatilities on Kosdaq Composite and Gyeongnam 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 Gyeongnam Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Gyeongnam Steel.
Diversification Opportunities for Kosdaq Composite and Gyeongnam Steel
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kosdaq and Gyeongnam is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Gyeongnam Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gyeongnam Steel 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 Gyeongnam Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gyeongnam Steel has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Gyeongnam Steel go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Gyeongnam Steel
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 3.06 times less return on investment than Gyeongnam Steel. In addition to that, Kosdaq Composite is 1.01 times more volatile than Gyeongnam Steel Co. It trades about 0.0 of its total potential returns per unit of risk. Gyeongnam Steel Co is currently generating about 0.01 per unit of volatility. If you would invest 290,543 in Gyeongnam Steel Co on August 29, 2024 and sell it today you would earn a total of 5,957 from holding Gyeongnam Steel Co or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Gyeongnam Steel Co
Performance |
| Timeline |
Kosdaq Composite and Gyeongnam Steel Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Gyeongnam Steel Co
Pair trading matchups for Gyeongnam Steel
Pair Trading with Kosdaq Composite and Gyeongnam Steel
The main advantage of trading using opposite Kosdaq Composite and Gyeongnam Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Gyeongnam 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 Gyeongnam Steel will offset losses from the drop in Gyeongnam 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 |
| Gyeongnam Steel vs. Sangsin Energy Display | Gyeongnam Steel vs. Dongbang Transport Logistics | Gyeongnam Steel vs. DB Insurance Co | Gyeongnam Steel vs. Digital Power Communications |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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