Correlation Between Kosdaq Composite and Samsung KODEX
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By analyzing existing cross correlation between Kosdaq Composite Index and Samsung KODEX 200, 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
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Samsung is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Samsung KODEX 200 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung KODEX 200 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 200 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 under-perform the Samsung KODEX. In addition to that, Kosdaq Composite is 1.15 times more volatile than Samsung KODEX 200. It trades about -0.3 of its total potential returns per unit of risk. Samsung KODEX 200 is currently generating about -0.11 per unit of volatility. If you would invest 1,218,000 in Samsung KODEX 200 on August 27, 2024 and sell it today you would lose (35,500) from holding Samsung KODEX 200 or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Samsung KODEX 200
Performance |
| Timeline |
Kosdaq Composite and Samsung KODEX Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Samsung KODEX 200
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. Daejung Chemicals Metals | Kosdaq Composite vs. LG Household Healthcare | Kosdaq Composite vs. Cuckoo Homesys Co | Kosdaq Composite vs. Osang Healthcare Co,Ltd |
| Samsung KODEX vs. Busan Industrial Co | Samsung KODEX vs. Busan Ind | Samsung KODEX vs. Mirae Asset Daewoo | Samsung KODEX vs. Shinhan WTI Futures |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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