Correlation Between Kosdaq Composite and SGA Solutions
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By analyzing existing cross correlation between Kosdaq Composite Index and SGA Solutions CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and SGA Solutions 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 SGA Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and SGA Solutions.
Diversification Opportunities for Kosdaq Composite and SGA Solutions
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and SGA is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and SGA Solutions CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGA Solutions 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 SGA Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGA Solutions CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and SGA Solutions go up and down completely randomly.
Pair Corralation between Kosdaq Composite and SGA Solutions
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.45 times more return on investment than SGA Solutions. However, Kosdaq Composite Index is 2.23 times less risky than SGA Solutions. It trades about 0.36 of its potential returns per unit of risk. SGA Solutions CoLtd is currently generating about 0.13 per unit of risk. If you would invest 67,819 in Kosdaq Composite Index on October 30, 2024 and sell it today you would earn a total of 5,055 from holding Kosdaq Composite Index or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. SGA Solutions CoLtd
Performance |
| Timeline |
Kosdaq Composite and SGA Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
SGA Solutions CoLtd
Pair trading matchups for SGA Solutions
Pair Trading with Kosdaq Composite and SGA Solutions
The main advantage of trading using opposite Kosdaq Composite and SGA Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, SGA Solutions 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 SGA Solutions will offset losses from the drop in SGA Solutions' long position.| Kosdaq Composite vs. Nable Communications | Kosdaq Composite vs. Lake Materials Co | Kosdaq Composite vs. Hyundai Engineering Plastics | Kosdaq Composite vs. Union Materials Corp |
| SGA Solutions vs. Samsung Electronics Co | SGA Solutions vs. Samsung Electronics Co | SGA Solutions vs. SK Hynix | SGA Solutions vs. HMM Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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