Correlation Between Kosdaq Composite and Hanwha Chemical
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By analyzing existing cross correlation between Kosdaq Composite Index and Hanwha Chemical Corp, you can compare the effects of market volatilities on Kosdaq Composite and Hanwha Chemical 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 Hanwha Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Hanwha Chemical.
Diversification Opportunities for Kosdaq Composite and Hanwha Chemical
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Hanwha is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Hanwha Chemical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Chemical Corp 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 Hanwha Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Chemical Corp has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Hanwha Chemical go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Hanwha Chemical
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.47 times more return on investment than Hanwha Chemical. However, Kosdaq Composite Index is 2.13 times less risky than Hanwha Chemical. It trades about -0.05 of its potential returns per unit of risk. Hanwha Chemical Corp is currently generating about -0.14 per unit of risk. If you would invest 73,951 in Kosdaq Composite Index on September 16, 2024 and sell it today you would lose (4,578) from holding Kosdaq Composite Index or give up 6.19% 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. Hanwha Chemical Corp
Performance |
Timeline |
Kosdaq Composite and Hanwha Chemical Volatility Contrast
Predicted Return Density |
Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Hanwha Chemical Corp
Pair trading matchups for Hanwha Chemical
Pair Trading with Kosdaq Composite and Hanwha Chemical
The main advantage of trading using opposite Kosdaq Composite and Hanwha Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Hanwha Chemical 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 Hanwha Chemical will offset losses from the drop in Hanwha Chemical's long position.Kosdaq Composite vs. Neungyule Education | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. Duksan Hi Metal | Kosdaq Composite vs. DONGKUK TED METAL |
Hanwha Chemical vs. Korean Reinsurance Co | Hanwha Chemical vs. Formetal Co | Hanwha Chemical vs. Myoung Shin Industrial | Hanwha Chemical vs. Kumho Industrial Co |
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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