Correlation Between Kosdaq Composite and SK Chemicals
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By analyzing existing cross correlation between Kosdaq Composite Index and SK Chemicals Co, you can compare the effects of market volatilities on Kosdaq Composite and SK Chemicals 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 SK Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and SK Chemicals.
Diversification Opportunities for Kosdaq Composite and SK Chemicals
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kosdaq and 285130 is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and SK Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Chemicals 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 SK Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Chemicals has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and SK Chemicals go up and down completely randomly.
Pair Corralation between Kosdaq Composite and SK Chemicals
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.78 times more return on investment than SK Chemicals. However, Kosdaq Composite Index is 1.28 times less risky than SK Chemicals. It trades about -0.01 of its potential returns per unit of risk. SK Chemicals Co is currently generating about -0.05 per unit of risk. If you would invest 88,007 in Kosdaq Composite Index on November 27, 2024 and sell it today you would lose (10,652) from holding Kosdaq Composite Index or give up 12.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Kosdaq Composite Index vs. SK Chemicals Co
Performance |
| Timeline |
Kosdaq Composite and SK Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
SK Chemicals Co
Pair trading matchups for SK Chemicals
Pair Trading with Kosdaq Composite and SK Chemicals
The main advantage of trading using opposite Kosdaq Composite and SK Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, SK Chemicals 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 SK Chemicals will offset losses from the drop in SK Chemicals' long position.| Kosdaq Composite vs. Seoul Food Industrial | Kosdaq Composite vs. Organic Special Pet | Kosdaq Composite vs. Hyundai Green Food | Kosdaq Composite vs. Namyang Dairy |
| SK Chemicals vs. LG Chemicals | SK Chemicals vs. POSCO Holdings | SK Chemicals vs. Hanwha Solutions | SK Chemicals vs. Lotte Chemical Corp |
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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