Correlation Between Kosdaq Composite and KHVATEC CoLtd
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By analyzing existing cross correlation between Kosdaq Composite Index and KHVATEC CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and KHVATEC CoLtd 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 KHVATEC CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and KHVATEC CoLtd.
Diversification Opportunities for Kosdaq Composite and KHVATEC CoLtd
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and KHVATEC is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and KHVATEC CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KHVATEC CoLtd 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 KHVATEC CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KHVATEC CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and KHVATEC CoLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and KHVATEC CoLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the KHVATEC CoLtd. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.36 times less risky than KHVATEC CoLtd. The index trades about -0.27 of its potential returns per unit of risk. The KHVATEC CoLtd is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 927,000 in KHVATEC CoLtd on September 4, 2024 and sell it today you would lose (71,000) from holding KHVATEC CoLtd or give up 7.66% 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. KHVATEC CoLtd
Performance |
| Timeline |
Kosdaq Composite and KHVATEC CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
KHVATEC CoLtd
Pair trading matchups for KHVATEC CoLtd
Pair Trading with Kosdaq Composite and KHVATEC CoLtd
The main advantage of trading using opposite Kosdaq Composite and KHVATEC CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, KHVATEC CoLtd 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 KHVATEC CoLtd will offset losses from the drop in KHVATEC CoLtd'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 |
| KHVATEC CoLtd vs. Seoul Semiconductor Co | KHVATEC CoLtd vs. Interflex Co | KHVATEC CoLtd vs. Intops Co | KHVATEC CoLtd vs. Kmw Inc |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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