Correlation Between Kosdaq Composite and HS Valve
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By analyzing existing cross correlation between Kosdaq Composite Index and HS Valve Co, you can compare the effects of market volatilities on Kosdaq Composite and HS Valve 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 HS Valve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and HS Valve.
Diversification Opportunities for Kosdaq Composite and HS Valve
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and 039610 is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and HS Valve Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HS Valve 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 HS Valve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HS Valve has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and HS Valve go up and down completely randomly.
Pair Corralation between Kosdaq Composite and HS Valve
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the HS Valve. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 3.21 times less risky than HS Valve. The index trades about -0.19 of its potential returns per unit of risk. The HS Valve Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 970,000 in HS Valve Co on August 29, 2024 and sell it today you would earn a total of 281,000 from holding HS Valve Co or generate 28.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. HS Valve Co
Performance |
| Timeline |
Kosdaq Composite and HS Valve Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
HS Valve Co
Pair trading matchups for HS Valve
Pair Trading with Kosdaq Composite and HS Valve
The main advantage of trading using opposite Kosdaq Composite and HS Valve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, HS Valve 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 HS Valve will offset losses from the drop in HS Valve's long position.| Kosdaq Composite vs. Korea Air Svc | Kosdaq Composite vs. Mobileleader CoLtd | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. TOPMATERIAL LTD |
| HS Valve vs. Han Kook Steel | HS Valve vs. Dongbu Steel Co | HS Valve vs. Seah Steel Corp | HS Valve vs. Hankook Steel Co |
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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