Correlation Between Kosdaq Composite and Daehan Steel
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By analyzing existing cross correlation between Kosdaq Composite Index and Daehan Steel, you can compare the effects of market volatilities on Kosdaq Composite and Daehan Steel 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 Daehan Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Daehan Steel.
Diversification Opportunities for Kosdaq Composite and Daehan Steel
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kosdaq and Daehan is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Daehan Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daehan Steel 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 Daehan Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daehan Steel has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Daehan Steel go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Daehan Steel
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Daehan Steel. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.97 times less risky than Daehan Steel. The index trades about -0.24 of its potential returns per unit of risk. The Daehan Steel is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,351,000 in Daehan Steel on August 25, 2024 and sell it today you would earn a total of 167,000 from holding Daehan Steel or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Daehan Steel
Performance |
| Timeline |
Kosdaq Composite and Daehan Steel Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Daehan Steel
Pair trading matchups for Daehan Steel
Pair Trading with Kosdaq Composite and Daehan Steel
The main advantage of trading using opposite Kosdaq Composite and Daehan Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Daehan Steel 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 Daehan Steel will offset losses from the drop in Daehan Steel's long position.| Kosdaq Composite vs. Kbi Metal Co | Kosdaq Composite vs. Shinsung Delta Tech | Kosdaq Composite vs. Woori Technology | Kosdaq Composite vs. Dongil Metal Co |
| Daehan Steel vs. Sungchang Autotech Co | Daehan Steel vs. Nh Investment And | Daehan Steel vs. Lion Chemtech Co | Daehan Steel vs. EBEST Investment Securities |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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