Correlation Between Kosdaq Composite and Sang A
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By analyzing existing cross correlation between Kosdaq Composite Index and Sang A Frontec CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and Sang A 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 Sang A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Sang A.
Diversification Opportunities for Kosdaq Composite and Sang A
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Sang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Sang A Frontec CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sang A Frontec 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 Sang A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sang A Frontec has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Sang A go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Sang A
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.59 times more return on investment than Sang A. However, Kosdaq Composite Index is 1.69 times less risky than Sang A. It trades about 0.0 of its potential returns per unit of risk. Sang A Frontec CoLtd is currently generating about -0.03 per unit of risk. If you would invest 73,235 in Kosdaq Composite Index on October 13, 2024 and sell it today you would lose (1,446) from holding Kosdaq Composite Index or give up 1.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Sang A Frontec CoLtd
Performance |
| Timeline |
Kosdaq Composite and Sang A Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Sang A Frontec CoLtd
Pair trading matchups for Sang A
Pair Trading with Kosdaq Composite and Sang A
The main advantage of trading using opposite Kosdaq Composite and Sang A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Sang A 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 Sang A will offset losses from the drop in Sang A's long position.| Kosdaq Composite vs. Dgb Financial | Kosdaq Composite vs. Shinhan Inverse Silver | Kosdaq Composite vs. Lotte Non Life Insurance | Kosdaq Composite vs. Jin Air Co |
| Sang A vs. MediaZen | Sang A vs. Pan Entertainment Co | Sang A vs. SAMG Entertainment Co | Sang A vs. Lotte Data Communication |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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