Correlation Between US Tech Stocks and Korean Stock Market Rises to Highest Level Since 2021
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Correlation Between US Tech Stocks and Korean Stock Market Rises to Highest Level Since 2021
According to data provided by asset management company Rayliant, the 60-day correlation between South Korea's composite KOSPI and the Nasdaq 100 index has recently climbed to around 0.50, reaching the highest level since 2021. Market participants warn that this tighter relationship also brings risks, as the rise in correlation between the two erodes the diversification and risk hedging effects that investors traditionally seek by holding US and South Korean stocks.
Navigating Web3 tides with focused insightsTechFlow reports, July 28, according to data provided by asset management firm Rayliant, the 60-day correlation between the KOSPI and the Nasdaq 100 Index has recently climbed to around 0.50, reaching the highest level since 2021.
Market participants warned that this tighter relationship also brings risks, as the rise in correlation between the two erodes the diversification and risk hedging effects that investors traditionally seek by holding U.S. and South Korean stocks. (Cailianshe)
