Correlation Between Kosdaq Composite and Seoul Semiconductor
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By analyzing existing cross correlation between Kosdaq Composite Index and Seoul Semiconductor Co, you can compare the effects of market volatilities on Kosdaq Composite and Seoul Semiconductor 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 Seoul Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Seoul Semiconductor.
Diversification Opportunities for Kosdaq Composite and Seoul Semiconductor
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Seoul is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Seoul Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoul Semiconductor 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 Seoul Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoul Semiconductor has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Seoul Semiconductor go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Seoul Semiconductor
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.72 times more return on investment than Seoul Semiconductor. However, Kosdaq Composite Index is 1.39 times less risky than Seoul Semiconductor. It trades about 0.0 of its potential returns per unit of risk. Seoul Semiconductor Co is currently generating about -0.02 per unit of risk. If you would invest 71,814 in Kosdaq Composite Index on August 28, 2024 and sell it today you would lose (1,983) from holding Kosdaq Composite Index or give up 2.76% 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. Seoul Semiconductor Co
Performance |
| Timeline |
Kosdaq Composite and Seoul Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Seoul Semiconductor Co
Pair trading matchups for Seoul Semiconductor
Pair Trading with Kosdaq Composite and Seoul Semiconductor
The main advantage of trading using opposite Kosdaq Composite and Seoul Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Seoul Semiconductor 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 Seoul Semiconductor will offset losses from the drop in Seoul Semiconductor's long position.| Kosdaq Composite vs. Daejung Chemicals Metals | Kosdaq Composite vs. LG Household Healthcare | Kosdaq Composite vs. Cuckoo Homesys Co | Kosdaq Composite vs. Osang Healthcare Co,Ltd |
| Seoul Semiconductor vs. Korea Real Estate | Seoul Semiconductor vs. Korea Ratings Co | Seoul Semiconductor vs. IQuest Co | Seoul Semiconductor vs. Wonbang Tech 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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