Correlation Between Kosdaq Composite and CKH Food
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By analyzing existing cross correlation between Kosdaq Composite Index and CKH Food Health, you can compare the effects of market volatilities on Kosdaq Composite and CKH Food 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 CKH Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and CKH Food.
Diversification Opportunities for Kosdaq Composite and CKH Food
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and CKH is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and CKH Food Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKH Food Health 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 CKH Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKH Food Health has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and CKH Food go up and down completely randomly.
Pair Corralation between Kosdaq Composite and CKH Food
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.9 times more return on investment than CKH Food. However, Kosdaq Composite Index is 1.11 times less risky than CKH Food. It trades about -0.17 of its potential returns per unit of risk. CKH Food Health is currently generating about -0.2 per unit of risk. If you would invest 74,048 in Kosdaq Composite Index on August 28, 2024 and sell it today you would lose (4,217) from holding Kosdaq Composite Index or give up 5.69% 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. CKH Food Health
Performance |
| Timeline |
Kosdaq Composite and CKH Food Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
CKH Food Health
Pair trading matchups for CKH Food
Pair Trading with Kosdaq Composite and CKH Food
The main advantage of trading using opposite Kosdaq Composite and CKH Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, CKH Food 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 CKH Food will offset losses from the drop in CKH Food'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 |
| CKH Food vs. AptaBio Therapeutics | CKH Food vs. Daewoo SBI SPAC | CKH Food vs. Dream Security co | CKH Food vs. Microfriend |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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