Correlation Between Dongwoo Farm and Kosdaq Composite
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By analyzing existing cross correlation between Dongwoo Farm To and Kosdaq Composite Index, you can compare the effects of market volatilities on Dongwoo Farm 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 Dongwoo Farm with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwoo Farm and Kosdaq Composite.
Diversification Opportunities for Dongwoo Farm and Kosdaq Composite
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongwoo and Kosdaq is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dongwoo Farm To 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 Dongwoo Farm 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 Dongwoo Farm To 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 Dongwoo Farm i.e., Dongwoo Farm and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Dongwoo Farm and Kosdaq Composite
Assuming the 90 days trading horizon Dongwoo Farm To is expected to generate 0.69 times more return on investment than Kosdaq Composite. However, Dongwoo Farm To is 1.45 times less risky than Kosdaq Composite. It trades about 0.02 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about -0.08 per unit of risk. If you would invest 190,800 in Dongwoo Farm To on September 24, 2024 and sell it today you would earn a total of 1,000.00 from holding Dongwoo Farm To or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongwoo Farm To vs. Kosdaq Composite Index
Performance |
| Timeline |
Dongwoo Farm and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Dongwoo Farm To
Pair trading matchups for Dongwoo Farm
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Dongwoo Farm and Kosdaq Composite
The main advantage of trading using opposite Dongwoo Farm and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwoo Farm 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.| Dongwoo Farm vs. Maeil Dairies Co | Dongwoo Farm vs. HYUNDAI FEED | Dongwoo Farm vs. Neo Cremar Co | Dongwoo Farm vs. Wing Yip Food |
| Kosdaq Composite vs. Dongwoo Farm To | Kosdaq Composite vs. Semyung Electric Machinery | Kosdaq Composite vs. Samick Musical Instruments | 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 Stocks Directory module to find actively traded stocks across global markets.
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