Correlation Between Kosdaq Composite and Samsung Biologics
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By analyzing existing cross correlation between Kosdaq Composite Index and Samsung Biologics Co, you can compare the effects of market volatilities on Kosdaq Composite and Samsung Biologics 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 Samsung Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Samsung Biologics.
Diversification Opportunities for Kosdaq Composite and Samsung Biologics
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kosdaq and Samsung is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Samsung Biologics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Biologics 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 Samsung Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Biologics has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Samsung Biologics go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Samsung Biologics
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Samsung Biologics. In addition to that, Kosdaq Composite is 1.11 times more volatile than Samsung Biologics Co. It trades about -0.14 of its total potential returns per unit of risk. Samsung Biologics Co is currently generating about -0.03 per unit of volatility. If you would invest 96,200,000 in Samsung Biologics Co on August 25, 2024 and sell it today you would lose (2,800,000) from holding Samsung Biologics Co or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Samsung Biologics Co
Performance |
| Timeline |
Kosdaq Composite and Samsung Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Samsung Biologics Co
Pair trading matchups for Samsung Biologics
Pair Trading with Kosdaq Composite and Samsung Biologics
The main advantage of trading using opposite Kosdaq Composite and Samsung Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Samsung Biologics 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 Samsung Biologics will offset losses from the drop in Samsung Biologics' long position.| Kosdaq Composite vs. Kbi Metal Co | Kosdaq Composite vs. Shinsung Delta Tech | Kosdaq Composite vs. Woori Technology | Kosdaq Composite vs. Dongil Metal Co |
| Samsung Biologics vs. Shinsegae Information Communication | Samsung Biologics vs. Digital Power Communications | Samsung Biologics vs. Korea Computer | Samsung Biologics vs. Lotte Data Communication |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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