Correlation Between Kosdaq Composite and CJ CheilJedang
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By analyzing existing cross correlation between Kosdaq Composite Index and CJ CheilJedang Corp, you can compare the effects of market volatilities on Kosdaq Composite and CJ CheilJedang 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 CJ CheilJedang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and CJ CheilJedang.
Diversification Opportunities for Kosdaq Composite and CJ CheilJedang
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and 097955 is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and CJ CheilJedang Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ CheilJedang Corp 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 CJ CheilJedang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ CheilJedang Corp has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and CJ CheilJedang go up and down completely randomly.
Pair Corralation between Kosdaq Composite and CJ CheilJedang
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the CJ CheilJedang. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.07 times less risky than CJ CheilJedang. The index trades about -0.28 of its potential returns per unit of risk. The CJ CheilJedang Corp is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 13,600,000 in CJ CheilJedang Corp on August 24, 2024 and sell it today you would lose (380,000) from holding CJ CheilJedang Corp or give up 2.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. CJ CheilJedang Corp
Performance |
| Timeline |
Kosdaq Composite and CJ CheilJedang Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
CJ CheilJedang Corp
Pair trading matchups for CJ CheilJedang
Pair Trading with Kosdaq Composite and CJ CheilJedang
The main advantage of trading using opposite Kosdaq Composite and CJ CheilJedang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, CJ CheilJedang 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 CJ CheilJedang will offset losses from the drop in CJ CheilJedang's long position.| Kosdaq Composite vs. Nam Hwa Construction | Kosdaq Composite vs. Dongbang Ship Machinery | Kosdaq Composite vs. SEOJEON ELECTRIC MACHINERY | Kosdaq Composite vs. Heungkuk Metaltech CoLtd |
| CJ CheilJedang vs. Hwangkum Steel Technology | CJ CheilJedang vs. Amogreentech Co | CJ CheilJedang vs. Intellian Technologies | CJ CheilJedang vs. Neungyule Education |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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