Correlation Between Kosdaq Composite and LAKE MATERIALS
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By analyzing existing cross correlation between Kosdaq Composite Index and LAKE MATERIALS LTD, you can compare the effects of market volatilities on Kosdaq Composite and LAKE MATERIALS 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 LAKE MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and LAKE MATERIALS.
Diversification Opportunities for Kosdaq Composite and LAKE MATERIALS
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and LAKE is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and LAKE MATERIALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAKE MATERIALS LTD 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 LAKE MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAKE MATERIALS LTD has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and LAKE MATERIALS go up and down completely randomly.
Pair Corralation between Kosdaq Composite and LAKE MATERIALS
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.47 times more return on investment than LAKE MATERIALS. However, Kosdaq Composite Index is 2.12 times less risky than LAKE MATERIALS. It trades about -0.25 of its potential returns per unit of risk. LAKE MATERIALS LTD is currently generating about -0.28 per unit of risk. If you would invest 74,306 in Kosdaq Composite Index on September 1, 2024 and sell it today you would lose (6,444) from holding Kosdaq Composite Index or give up 8.67% 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. LAKE MATERIALS LTD
Performance |
| Timeline |
Kosdaq Composite and LAKE MATERIALS Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
LAKE MATERIALS LTD
Pair trading matchups for LAKE MATERIALS
Pair Trading with Kosdaq Composite and LAKE MATERIALS
The main advantage of trading using opposite Kosdaq Composite and LAKE MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, LAKE MATERIALS 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 LAKE MATERIALS will offset losses from the drop in LAKE MATERIALS'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 |
| LAKE MATERIALS vs. Samsung Electronics Co | LAKE MATERIALS vs. Samsung Electronics Co | LAKE MATERIALS vs. LG Energy Solution | LAKE MATERIALS vs. SK Hynix |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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