Correlation Between Kosdaq Composite and HLB Power
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By analyzing existing cross correlation between Kosdaq Composite Index and HLB Power Co, you can compare the effects of market volatilities on Kosdaq Composite and HLB Power 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 HLB Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and HLB Power.
Diversification Opportunities for Kosdaq Composite and HLB Power
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and HLB is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and HLB Power Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HLB Power 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 HLB Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HLB Power has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and HLB Power go up and down completely randomly.
Pair Corralation between Kosdaq Composite and HLB Power
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.39 times more return on investment than HLB Power. However, Kosdaq Composite Index is 2.57 times less risky than HLB Power. It trades about -0.01 of its potential returns per unit of risk. HLB Power Co is currently generating about -0.03 per unit of risk. If you would invest 77,255 in Kosdaq Composite Index on September 4, 2024 and sell it today you would lose (9,602) from holding Kosdaq Composite Index or give up 12.43% 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. HLB Power Co
Performance |
| Timeline |
Kosdaq Composite and HLB Power Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
HLB Power Co
Pair trading matchups for HLB Power
Pair Trading with Kosdaq Composite and HLB Power
The main advantage of trading using opposite Kosdaq Composite and HLB Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, HLB Power 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 HLB Power will offset losses from the drop in HLB Power's long position.| Kosdaq Composite vs. Osang Healthcare Co,Ltd | Kosdaq Composite vs. Korea Alcohol Industrial | Kosdaq Composite vs. Samlip General Foods | Kosdaq Composite vs. INFINITT Healthcare Co |
| HLB Power vs. LG Display | HLB Power vs. Hyundai Motor | HLB Power vs. Hyundai Motor Co | HLB Power vs. Hyundai Motor 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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