Correlation Between Kosdaq Composite and LS Materials
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By analyzing existing cross correlation between Kosdaq Composite Index and LS Materials, you can compare the effects of market volatilities on Kosdaq Composite and LS 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 LS Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and LS Materials.
Diversification Opportunities for Kosdaq Composite and LS Materials
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and 417200 is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and LS Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LS Materials 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 LS Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LS Materials has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and LS Materials go up and down completely randomly.
Pair Corralation between Kosdaq Composite and LS Materials
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the LS Materials. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 13.74 times less risky than LS Materials. The index trades about 0.0 of its potential returns per unit of risk. The LS Materials is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 599,449 in LS Materials on August 26, 2024 and sell it today you would earn a total of 586,551 from holding LS Materials or generate 97.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 48.35% |
| Values | Daily Returns |
Kosdaq Composite Index vs. LS Materials
Performance |
| Timeline |
Kosdaq Composite and LS Materials Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
LS Materials
Pair trading matchups for LS Materials
Pair Trading with Kosdaq Composite and LS Materials
The main advantage of trading using opposite Kosdaq Composite and LS Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, LS 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 LS Materials will offset losses from the drop in LS Materials' long position.| Kosdaq Composite vs. Kbi Metal Co | Kosdaq Composite vs. Shinsung Delta Tech | Kosdaq Composite vs. Woori Technology | Kosdaq Composite vs. Dongil Metal Co |
| LS Materials vs. Samsung Electronics Co | LS Materials vs. Samsung Electronics Co | LS Materials vs. LG Energy Solution | LS 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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