Correlation Between EBEST Investment and Kosdaq Composite
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By analyzing existing cross correlation between EBEST Investment Securities and Kosdaq Composite Index, you can compare the effects of market volatilities on EBEST Investment 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 EBEST Investment with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBEST Investment and Kosdaq Composite.
Diversification Opportunities for EBEST Investment and Kosdaq Composite
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EBEST and Kosdaq is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding EBEST Investment Securities 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 EBEST Investment 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 EBEST Investment Securities 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 EBEST Investment i.e., EBEST Investment and Kosdaq Composite go up and down completely randomly.
Pair Corralation between EBEST Investment and Kosdaq Composite
Assuming the 90 days trading horizon EBEST Investment Securities is expected to under-perform the Kosdaq Composite. But the stock apears to be less risky and, when comparing its historical volatility, EBEST Investment Securities is 1.1 times less risky than Kosdaq Composite. The stock trades about -0.16 of its potential returns per unit of risk. The Kosdaq Composite Index is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 76,388 in Kosdaq Composite Index on September 30, 2024 and sell it today you would lose (9,791) from holding Kosdaq Composite Index or give up 12.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EBEST Investment Securities vs. Kosdaq Composite Index
Performance |
| Timeline |
EBEST Investment and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
EBEST Investment Securities
Pair trading matchups for EBEST Investment
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with EBEST Investment and Kosdaq Composite
The main advantage of trading using opposite EBEST Investment and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBEST Investment 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.| EBEST Investment vs. KB Financial Group | EBEST Investment vs. Hyundai Motor | EBEST Investment vs. Hyundai Motor Co | EBEST Investment vs. Hyundai Motor Co |
| Kosdaq Composite vs. Formetal Co | Kosdaq Composite vs. Eagon Industrial Co | Kosdaq Composite vs. PJ Metal Co | Kosdaq Composite vs. Songwon 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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