Correlation Between Kosdaq Composite and Samjin LND
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By analyzing existing cross correlation between Kosdaq Composite Index and Samjin LND Co, you can compare the effects of market volatilities on Kosdaq Composite and Samjin LND 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 Samjin LND. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Samjin LND.
Diversification Opportunities for Kosdaq Composite and Samjin LND
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Samjin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Samjin LND Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samjin LND 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 Samjin LND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samjin LND has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Samjin LND go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Samjin LND
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.66 times more return on investment than Samjin LND. However, Kosdaq Composite Index is 1.51 times less risky than Samjin LND. It trades about -0.25 of its potential returns per unit of risk. Samjin LND Co is currently generating about -0.19 per unit of risk. If you would invest 74,306 in Kosdaq Composite Index on September 1, 2024 and sell it today you would lose (6,444) from holding Kosdaq Composite Index or give up 8.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Samjin LND Co
Performance |
| Timeline |
Kosdaq Composite and Samjin LND Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Samjin LND Co
Pair trading matchups for Samjin LND
Pair Trading with Kosdaq Composite and Samjin LND
The main advantage of trading using opposite Kosdaq Composite and Samjin LND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Samjin LND 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 Samjin LND will offset losses from the drop in Samjin LND's long position.| Kosdaq Composite vs. Golden Bridge Investment | Kosdaq Composite vs. Lotte Data Communication | Kosdaq Composite vs. E Investment Development | Kosdaq Composite vs. Stic Investments |
| Samjin LND vs. Samsung Life Insurance | Samjin LND vs. Hankuk Steel Wire | Samjin LND vs. Dongil Steel Co | Samjin LND vs. J 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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