Correlation Between Lotte Chilsung and Kosdaq Composite
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By analyzing existing cross correlation between Lotte Chilsung Beverage and Kosdaq Composite Index, you can compare the effects of market volatilities on Lotte Chilsung and Kosdaq Composite 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 Lotte Chilsung with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Chilsung and Kosdaq Composite.
Diversification Opportunities for Lotte Chilsung and Kosdaq Composite
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lotte and Kosdaq is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Chilsung Beverage and Kosdaq Composite Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kosdaq Composite Index and Lotte Chilsung 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 Lotte Chilsung Beverage are associated (or correlated) with Kosdaq Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kosdaq Composite Index has no effect on the direction of Lotte Chilsung i.e., Lotte Chilsung and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Lotte Chilsung and Kosdaq Composite
Assuming the 90 days trading horizon Lotte Chilsung Beverage is expected to generate 0.81 times more return on investment than Kosdaq Composite. However, Lotte Chilsung Beverage is 1.23 times less risky than Kosdaq Composite. It trades about -0.05 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about -0.04 per unit of risk. If you would invest 11,820,000 in Lotte Chilsung Beverage on September 25, 2024 and sell it today you would lose (270,000) from holding Lotte Chilsung Beverage or give up 2.28% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Lotte Chilsung Beverage vs. Kosdaq Composite Index
Performance |
Timeline |
Lotte Chilsung and Kosdaq Composite Volatility Contrast
Predicted Return Density |
Returns |
Lotte Chilsung Beverage
Pair trading matchups for Lotte Chilsung
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Lotte Chilsung and Kosdaq Composite
The main advantage of trading using opposite Lotte Chilsung and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Chilsung position performs unexpectedly, Kosdaq Composite 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 Kosdaq Composite will offset losses from the drop in Kosdaq Composite's long position.Lotte Chilsung vs. Woori Financial Group | Lotte Chilsung vs. Jb Financial | Lotte Chilsung vs. Nh Investment And | Lotte Chilsung vs. Kumho Petro Chemical |
Kosdaq Composite vs. Lotte Chilsung Beverage | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. Mirai Semiconductors Co | Kosdaq Composite vs. Ssangyong Information Communication |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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