Correlation Between Kosdaq Composite and SebitChem
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By analyzing existing cross correlation between Kosdaq Composite Index and SebitChem Co, you can compare the effects of market volatilities on Kosdaq Composite and SebitChem 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 SebitChem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and SebitChem.
Diversification Opportunities for Kosdaq Composite and SebitChem
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kosdaq and SebitChem is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and SebitChem Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SebitChem 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 SebitChem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SebitChem has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and SebitChem go up and down completely randomly.
Pair Corralation between Kosdaq Composite and SebitChem
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.46 times more return on investment than SebitChem. However, Kosdaq Composite Index is 2.18 times less risky than SebitChem. It trades about -0.2 of its potential returns per unit of risk. SebitChem Co is currently generating about -0.33 per unit of risk. If you would invest 72,905 in Kosdaq Composite Index on September 2, 2024 and sell it today you would lose (5,086) from holding Kosdaq Composite Index or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. SebitChem Co
Performance |
| Timeline |
Kosdaq Composite and SebitChem Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
SebitChem Co
Pair trading matchups for SebitChem
Pair Trading with Kosdaq Composite and SebitChem
The main advantage of trading using opposite Kosdaq Composite and SebitChem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, SebitChem 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 SebitChem will offset losses from the drop in SebitChem's long position.| Kosdaq Composite vs. DONGKUK TED METAL | Kosdaq Composite vs. Pungguk Ethanol Industrial | Kosdaq Composite vs. Duksan Hi Metal | Kosdaq Composite vs. Daiyang Metal Co |
| SebitChem vs. Lotte Chilsung Beverage | SebitChem vs. Digital Multimedia Technology | SebitChem vs. Alton Sports CoLtd | SebitChem vs. Barunson Entertainment Arts |
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 Stocks Directory module to find actively traded stocks across global markets.
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