Correlation Between Kosdaq Composite and Maeil Dairies
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By analyzing existing cross correlation between Kosdaq Composite Index and Maeil Dairies Co, you can compare the effects of market volatilities on Kosdaq Composite and Maeil Dairies 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 Maeil Dairies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Maeil Dairies.
Diversification Opportunities for Kosdaq Composite and Maeil Dairies
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Maeil is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Maeil Dairies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maeil Dairies 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 Maeil Dairies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maeil Dairies has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Maeil Dairies go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Maeil Dairies
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Maeil Dairies. In addition to that, Kosdaq Composite is 1.68 times more volatile than Maeil Dairies Co. It trades about -0.19 of its total potential returns per unit of risk. Maeil Dairies Co is currently generating about -0.04 per unit of volatility. If you would invest 3,815,000 in Maeil Dairies Co on August 29, 2024 and sell it today you would lose (35,000) from holding Maeil Dairies Co or give up 0.92% 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. Maeil Dairies Co
Performance |
| Timeline |
Kosdaq Composite and Maeil Dairies Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Maeil Dairies Co
Pair trading matchups for Maeil Dairies
Pair Trading with Kosdaq Composite and Maeil Dairies
The main advantage of trading using opposite Kosdaq Composite and Maeil Dairies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Maeil Dairies 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 Maeil Dairies will offset losses from the drop in Maeil Dairies' long position.| Kosdaq Composite vs. Korea Air Svc | Kosdaq Composite vs. Mobileleader CoLtd | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. TOPMATERIAL LTD |
| Maeil Dairies vs. Busan Industrial Co | Maeil Dairies vs. Busan Ind | Maeil Dairies vs. Shinhan WTI Futures | Maeil Dairies vs. Finebesteel |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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