Correlation Between Kosdaq Composite and HuMC
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By analyzing existing cross correlation between Kosdaq Composite Index and HuMC Co, you can compare the effects of market volatilities on Kosdaq Composite and HuMC 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 HuMC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and HuMC.
Diversification Opportunities for Kosdaq Composite and HuMC
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and HuMC is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and HuMC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HuMC 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 HuMC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HuMC has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and HuMC go up and down completely randomly.
Pair Corralation between Kosdaq Composite and HuMC
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the HuMC. In addition to that, Kosdaq Composite is 1.92 times more volatile than HuMC Co. It trades about -0.25 of its total potential returns per unit of risk. HuMC Co is currently generating about -0.15 per unit of volatility. If you would invest 102,000 in HuMC Co on September 1, 2024 and sell it today you would lose (2,800) from holding HuMC Co or give up 2.75% 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. HuMC Co
Performance |
| Timeline |
Kosdaq Composite and HuMC Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
HuMC Co
Pair trading matchups for HuMC
Pair Trading with Kosdaq Composite and HuMC
The main advantage of trading using opposite Kosdaq Composite and HuMC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, HuMC 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 HuMC will offset losses from the drop in HuMC's long position.| Kosdaq Composite vs. Golden Bridge Investment | Kosdaq Composite vs. Lotte Data Communication | Kosdaq Composite vs. E Investment Development | Kosdaq Composite vs. Stic Investments |
| HuMC vs. CKH Food Health | HuMC vs. Raontech | HuMC vs. Eagle Veterinary Technology | HuMC vs. LG Household Healthcare |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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