Correlation Between Kosdaq Composite and HSD Engine
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By analyzing existing cross correlation between Kosdaq Composite Index and HSD Engine Co, you can compare the effects of market volatilities on Kosdaq Composite and HSD Engine 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 HSD Engine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and HSD Engine.
Diversification Opportunities for Kosdaq Composite and HSD Engine
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kosdaq and HSD is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and HSD Engine Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSD Engine 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 HSD Engine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSD Engine has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and HSD Engine go up and down completely randomly.
Pair Corralation between Kosdaq Composite and HSD Engine
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the HSD Engine. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 2.5 times less risky than HSD Engine. The index trades about -0.08 of its potential returns per unit of risk. The HSD Engine Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 911,000 in HSD Engine Co on August 27, 2024 and sell it today you would earn a total of 758,000 from holding HSD Engine Co or generate 83.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. HSD Engine Co
Performance |
| Timeline |
Kosdaq Composite and HSD Engine Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
HSD Engine Co
Pair trading matchups for HSD Engine
Pair Trading with Kosdaq Composite and HSD Engine
The main advantage of trading using opposite Kosdaq Composite and HSD Engine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, HSD Engine 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 HSD Engine will offset losses from the drop in HSD Engine's long position.| Kosdaq Composite vs. Korean Air Lines | Kosdaq Composite vs. NH Investment Securities | Kosdaq Composite vs. Hana Materials | Kosdaq Composite vs. Nh Investment And |
| HSD Engine vs. LG Chemicals | HSD Engine vs. Woorim Machinery Co | HSD Engine vs. Shinhan Inverse Silver | HSD Engine vs. Dongbang Ship Machinery |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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