Correlation Between Kosdaq Composite and Hyundai Home
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By analyzing existing cross correlation between Kosdaq Composite Index and Hyundai Home Shopping, you can compare the effects of market volatilities on Kosdaq Composite and Hyundai Home 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 Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Hyundai Home.
Diversification Opportunities for Kosdaq Composite and Hyundai Home
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and Hyundai is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Hyundai Home Shopping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Home Shopping 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 Hyundai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Home Shopping has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Hyundai Home go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Hyundai Home
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 1.76 times less return on investment than Hyundai Home. But when comparing it to its historical volatility, Kosdaq Composite Index is 1.97 times less risky than Hyundai Home. It trades about 0.29 of its potential returns per unit of risk. Hyundai Home Shopping is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 4,405,000 in Hyundai Home Shopping on November 22, 2024 and sell it today you would earn a total of 505,000 from holding Hyundai Home Shopping or generate 11.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Hyundai Home Shopping
Performance |
| Timeline |
Kosdaq Composite and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Hyundai Home Shopping
Pair trading matchups for Hyundai Home
Pair Trading with Kosdaq Composite and Hyundai Home
The main advantage of trading using opposite Kosdaq Composite and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Hyundai Home 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 Hyundai Home will offset losses from the drop in Hyundai Home's long position.| Kosdaq Composite vs. Woorim Machinery Co | Kosdaq Composite vs. Hansol Chemical Co | Kosdaq Composite vs. Seoam Machinery Industry | Kosdaq Composite vs. SK Chemicals Co |
| Hyundai Home vs. Koryo Credit Information | Hyundai Home vs. Hanwha Life Insurance | Hyundai Home vs. KakaoBank Corp | Hyundai Home vs. BNK Financial Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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