Correlation Between RFTech and Kosdaq Composite
Specify exactly 2 symbols:
By analyzing existing cross correlation between RFTech Co and Kosdaq Composite Index, you can compare the effects of market volatilities on RFTech 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 RFTech with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of RFTech and Kosdaq Composite.
Diversification Opportunities for RFTech and Kosdaq Composite
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between RFTech and Kosdaq is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding RFTech Co 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 RFTech 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 RFTech Co 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 RFTech i.e., RFTech and Kosdaq Composite go up and down completely randomly.
Pair Corralation between RFTech and Kosdaq Composite
Assuming the 90 days trading horizon RFTech Co is expected to generate 1.14 times more return on investment than Kosdaq Composite. However, RFTech is 1.14 times more volatile than Kosdaq Composite Index. It trades about -0.03 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 449,500 in RFTech Co on September 2, 2024 and sell it today you would lose (106,500) from holding RFTech Co or give up 23.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RFTech Co vs. Kosdaq Composite Index
Performance |
| Timeline |
RFTech and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
RFTech Co
Pair trading matchups for RFTech
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with RFTech and Kosdaq Composite
The main advantage of trading using opposite RFTech and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RFTech 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.The idea behind RFTech Co and Kosdaq Composite Index pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kosdaq Composite vs. DONGKUK TED METAL | Kosdaq Composite vs. Pungguk Ethanol Industrial | Kosdaq Composite vs. Duksan Hi Metal | Kosdaq Composite vs. Daiyang Metal 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |