Correlation Between Kosdaq Composite and Sempio Foods
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By analyzing existing cross correlation between Kosdaq Composite Index and Sempio Foods Co, you can compare the effects of market volatilities on Kosdaq Composite and Sempio Foods 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 Sempio Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Sempio Foods.
Diversification Opportunities for Kosdaq Composite and Sempio Foods
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Sempio is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Sempio Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sempio Foods 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 Sempio Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sempio Foods has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Sempio Foods go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Sempio Foods
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Sempio Foods. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.6 times less risky than Sempio Foods. The index trades about -0.04 of its potential returns per unit of risk. The Sempio Foods Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,710,000 in Sempio Foods Co on August 29, 2024 and sell it today you would lose (85,000) from holding Sempio Foods Co or give up 3.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Sempio Foods Co
Performance |
| Timeline |
Kosdaq Composite and Sempio Foods Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Sempio Foods Co
Pair trading matchups for Sempio Foods
Pair Trading with Kosdaq Composite and Sempio Foods
The main advantage of trading using opposite Kosdaq Composite and Sempio Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Sempio Foods 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 Sempio Foods will offset losses from the drop in Sempio Foods' long position.| Kosdaq Composite vs. Korea Air Svc | Kosdaq Composite vs. Mobileleader CoLtd | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. TOPMATERIAL LTD |
| Sempio Foods vs. Samsung Electronics Co | Sempio Foods vs. Samsung Electronics Co | Sempio Foods vs. Hyundai Motor Co | Sempio Foods 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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