Correlation Between Kosdaq Composite and Hyundai Rotem
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By analyzing existing cross correlation between Kosdaq Composite Index and Hyundai Rotem Co, you can compare the effects of market volatilities on Kosdaq Composite and Hyundai Rotem 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 Rotem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Hyundai Rotem.
Diversification Opportunities for Kosdaq Composite and Hyundai Rotem
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kosdaq and Hyundai is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Hyundai Rotem Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Rotem 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 Rotem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Rotem has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Hyundai Rotem go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Hyundai Rotem
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.46 times more return on investment than Hyundai Rotem. However, Kosdaq Composite Index is 2.18 times less risky than Hyundai Rotem. It trades about -0.14 of its potential returns per unit of risk. Hyundai Rotem Co is currently generating about -0.25 per unit of risk. If you would invest 72,884 in Kosdaq Composite Index on September 12, 2024 and sell it today you would lose (5,292) from holding Kosdaq Composite Index or give up 7.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Hyundai Rotem Co
Performance |
| Timeline |
Kosdaq Composite and Hyundai Rotem Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Hyundai Rotem Co
Pair trading matchups for Hyundai Rotem
Pair Trading with Kosdaq Composite and Hyundai Rotem
The main advantage of trading using opposite Kosdaq Composite and Hyundai Rotem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Hyundai Rotem 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 Rotem will offset losses from the drop in Hyundai Rotem's long position.| Kosdaq Composite vs. Daishin Information Communications | Kosdaq Composite vs. Nh Investment And | Kosdaq Composite vs. Korea Computer | Kosdaq Composite vs. DSC Investment |
| Hyundai Rotem vs. Korea New Network | Hyundai Rotem vs. Solution Advanced Technology | Hyundai Rotem vs. Busan Industrial Co | Hyundai Rotem vs. Busan Ind |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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