Correlation Between Kosdaq Composite and Kepco Plant
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By analyzing existing cross correlation between Kosdaq Composite Index and Kepco Plant S, you can compare the effects of market volatilities on Kosdaq Composite and Kepco Plant 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 Kepco Plant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Kepco Plant.
Diversification Opportunities for Kosdaq Composite and Kepco Plant
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kosdaq and Kepco is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Kepco Plant S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kepco Plant S 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 Kepco Plant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kepco Plant S has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Kepco Plant go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Kepco Plant
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Kepco Plant. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.03 times less risky than Kepco Plant. The index trades about -0.04 of its potential returns per unit of risk. The Kepco Plant S is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,214,990 in Kepco Plant S on September 4, 2024 and sell it today you would earn a total of 1,645,010 from holding Kepco Plant S or generate 51.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Kepco Plant S
Performance |
| Timeline |
Kosdaq Composite and Kepco Plant Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Kepco Plant S
Pair trading matchups for Kepco Plant
Pair Trading with Kosdaq Composite and Kepco Plant
The main advantage of trading using opposite Kosdaq Composite and Kepco Plant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Kepco Plant 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 Kepco Plant will offset losses from the drop in Kepco Plant'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 |
| Kepco Plant vs. CG Hi Tech | Kepco Plant vs. PLAYWITH | Kepco Plant vs. Lotte Data Communication | Kepco Plant vs. DB Insurance 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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