Correlation Between Kosdaq Composite and SEOJEON ELECTRIC
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By analyzing existing cross correlation between Kosdaq Composite Index and SEOJEON ELECTRIC MACHINERY, you can compare the effects of market volatilities on Kosdaq Composite and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and SEOJEON ELECTRIC.
Diversification Opportunities for Kosdaq Composite and SEOJEON ELECTRIC
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kosdaq and SEOJEON is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and SEOJEON ELECTRIC MACHINERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOJEON ELECTRIC MAC 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 SEOJEON ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOJEON ELECTRIC MAC has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and SEOJEON ELECTRIC go up and down completely randomly.
Pair Corralation between Kosdaq Composite and SEOJEON ELECTRIC
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.51 times more return on investment than SEOJEON ELECTRIC. However, Kosdaq Composite Index is 1.97 times less risky than SEOJEON ELECTRIC. It trades about -0.3 of its potential returns per unit of risk. SEOJEON ELECTRIC MACHINERY is currently generating about -0.17 per unit of risk. If you would invest 74,048 in Kosdaq Composite Index on August 27, 2024 and sell it today you would lose (6,347) from holding Kosdaq Composite Index or give up 8.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. SEOJEON ELECTRIC MACHINERY
Performance |
| Timeline |
Kosdaq Composite and SEOJEON ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
SEOJEON ELECTRIC MACHINERY
Pair trading matchups for SEOJEON ELECTRIC
Pair Trading with Kosdaq Composite and SEOJEON ELECTRIC
The main advantage of trading using opposite Kosdaq Composite and SEOJEON ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, SEOJEON ELECTRIC 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 SEOJEON ELECTRIC will offset losses from the drop in SEOJEON ELECTRIC's long position.| Kosdaq Composite vs. Daejung Chemicals Metals | Kosdaq Composite vs. LG Household Healthcare | Kosdaq Composite vs. Cuckoo Homesys Co | Kosdaq Composite vs. Osang Healthcare Co,Ltd |
| SEOJEON ELECTRIC vs. Samsung Electronics Co | SEOJEON ELECTRIC vs. Samsung Electronics Co | SEOJEON ELECTRIC vs. Hyundai Motor Co | SEOJEON ELECTRIC vs. Hyundai Motor |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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