Correlation Between Kosdaq Composite and WONIK Materials
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By analyzing existing cross correlation between Kosdaq Composite Index and WONIK Materials CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and WONIK Materials 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 WONIK Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and WONIK Materials.
Diversification Opportunities for Kosdaq Composite and WONIK Materials
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and WONIK is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and WONIK Materials CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WONIK Materials CoLtd 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 WONIK Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WONIK Materials CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and WONIK Materials go up and down completely randomly.
Pair Corralation between Kosdaq Composite and WONIK Materials
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.63 times more return on investment than WONIK Materials. However, Kosdaq Composite Index is 1.58 times less risky than WONIK Materials. It trades about -0.05 of its potential returns per unit of risk. WONIK Materials CoLtd is currently generating about -0.08 per unit of risk. If you would invest 85,096 in Kosdaq Composite Index on September 12, 2024 and sell it today you would lose (17,504) from holding Kosdaq Composite Index or give up 20.57% 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. WONIK Materials CoLtd
Performance |
| Timeline |
Kosdaq Composite and WONIK Materials Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
WONIK Materials CoLtd
Pair trading matchups for WONIK Materials
Pair Trading with Kosdaq Composite and WONIK Materials
The main advantage of trading using opposite Kosdaq Composite and WONIK Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, WONIK Materials 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 WONIK Materials will offset losses from the drop in WONIK Materials' long position.| Kosdaq Composite vs. Daishin Information Communications | Kosdaq Composite vs. Nh Investment And | Kosdaq Composite vs. Korea Computer | Kosdaq Composite vs. DSC Investment |
| WONIK Materials vs. LG Chemicals | WONIK Materials vs. POSCO Holdings | WONIK Materials vs. Hanwha Solutions | WONIK Materials vs. Lotte Chemical Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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