Correlation Between Kosdaq Composite and Hana Financial
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By analyzing existing cross correlation between Kosdaq Composite Index and Hana Financial 7, you can compare the effects of market volatilities on Kosdaq Composite and Hana Financial 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 Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Hana Financial.
Diversification Opportunities for Kosdaq Composite and Hana Financial
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kosdaq and Hana is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Hana Financial 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Financial 7 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 Hana Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Financial 7 has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Hana Financial go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Hana Financial
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Hana Financial. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 2.24 times less risky than Hana Financial. The index trades about -0.09 of its potential returns per unit of risk. The Hana Financial 7 is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,466,000 in Hana Financial 7 on August 31, 2024 and sell it today you would lose (234,000) from holding Hana Financial 7 or give up 15.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Hana Financial 7
Performance |
| Timeline |
Kosdaq Composite and Hana Financial Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Hana Financial 7
Pair trading matchups for Hana Financial
Pair Trading with Kosdaq Composite and Hana Financial
The main advantage of trading using opposite Kosdaq Composite and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Hana Financial 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 Hana Financial will offset losses from the drop in Hana Financial's long position.| Kosdaq Composite vs. LG Chemicals | Kosdaq Composite vs. Sempio Foods Co | Kosdaq Composite vs. SK Chemicals Co | Kosdaq Composite vs. Korea Shipbuilding Offshore |
| Hana Financial vs. Ananti Inc | Hana Financial vs. SS TECH | Hana Financial vs. Vieworks Co | Hana Financial vs. Shinsung Delta Tech |
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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