Correlation Between Kosdaq Composite and Samsung KODEX
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By analyzing existing cross correlation between Kosdaq Composite Index and Samsung KODEX IT, you can compare the effects of market volatilities on Kosdaq Composite and Samsung KODEX 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 KODEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Samsung KODEX.
Diversification Opportunities for Kosdaq Composite and Samsung KODEX
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Samsung is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Samsung KODEX IT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung KODEX IT 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 KODEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung KODEX IT has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Samsung KODEX go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Samsung KODEX
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.91 times more return on investment than Samsung KODEX. However, Kosdaq Composite Index is 1.1 times less risky than Samsung KODEX. It trades about -0.04 of its potential returns per unit of risk. Samsung KODEX IT is currently generating about -0.04 per unit of risk. If you would invest 88,371 in Kosdaq Composite Index on September 1, 2024 and sell it today you would lose (20,509) from holding Kosdaq Composite Index or give up 23.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Samsung KODEX IT
Performance |
| Timeline |
Kosdaq Composite and Samsung KODEX Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Samsung KODEX IT
Pair trading matchups for Samsung KODEX
Pair Trading with Kosdaq Composite and Samsung KODEX
The main advantage of trading using opposite Kosdaq Composite and Samsung KODEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Samsung KODEX 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 KODEX will offset losses from the drop in Samsung KODEX'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 |
| Samsung KODEX vs. Samsung KODEX Machinary | Samsung KODEX vs. Samsung KODEX Samsung | Samsung KODEX vs. Samsung Asset Management | Samsung KODEX vs. Samsung KODEX Copper |
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 Stocks Directory module to find actively traded stocks across global markets.
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