Correlation Between Kosdaq Composite and Hyundai Glovis
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By analyzing existing cross correlation between Kosdaq Composite Index and Hyundai Glovis, you can compare the effects of market volatilities on Kosdaq Composite and Hyundai Glovis 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 Glovis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Hyundai Glovis.
Diversification Opportunities for Kosdaq Composite and Hyundai Glovis
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kosdaq and Hyundai is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Hyundai Glovis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Glovis 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 Glovis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Glovis has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Hyundai Glovis go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Hyundai Glovis
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 115.44 times less return on investment than Hyundai Glovis. But when comparing it to its historical volatility, Kosdaq Composite Index is 1.25 times less risky than Hyundai Glovis. It trades about 0.0 of its potential returns per unit of risk. Hyundai Glovis is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8,235,472 in Hyundai Glovis on September 3, 2024 and sell it today you would earn a total of 4,064,528 from holding Hyundai Glovis or generate 49.35% 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. Hyundai Glovis
Performance |
| Timeline |
Kosdaq Composite and Hyundai Glovis Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Hyundai Glovis
Pair trading matchups for Hyundai Glovis
Pair Trading with Kosdaq Composite and Hyundai Glovis
The main advantage of trading using opposite Kosdaq Composite and Hyundai Glovis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Hyundai Glovis 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 Glovis will offset losses from the drop in Hyundai Glovis' long position.The idea behind Kosdaq Composite Index and Hyundai Glovis pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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