Correlation Between BNK Financial and Kosdaq Composite
Specify exactly 2 symbols:
By analyzing existing cross correlation between BNK Financial Group and Kosdaq Composite Index, you can compare the effects of market volatilities on BNK Financial 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 BNK Financial with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNK Financial and Kosdaq Composite.
Diversification Opportunities for BNK Financial and Kosdaq Composite
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BNK and Kosdaq is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding BNK Financial Group 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 BNK Financial 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 BNK Financial Group 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 BNK Financial i.e., BNK Financial and Kosdaq Composite go up and down completely randomly.
Pair Corralation between BNK Financial and Kosdaq Composite
Assuming the 90 days trading horizon BNK Financial Group is expected to generate 1.24 times more return on investment than Kosdaq Composite. However, BNK Financial is 1.24 times more volatile than Kosdaq Composite Index. It trades about 0.18 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about 0.01 per unit of risk. If you would invest 959,000 in BNK Financial Group on September 21, 2024 and sell it today you would earn a total of 100,000 from holding BNK Financial Group or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNK Financial Group vs. Kosdaq Composite Index
Performance |
| Timeline |
BNK Financial and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
BNK Financial Group
Pair trading matchups for BNK Financial
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with BNK Financial and Kosdaq Composite
The main advantage of trading using opposite BNK Financial and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNK Financial 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.| BNK Financial vs. KB Financial Group | BNK Financial vs. Shinhan Financial Group | BNK Financial vs. Hana Financial | BNK Financial vs. Woori Financial Group |
| Kosdaq Composite vs. EBEST Investment Securities | Kosdaq Composite vs. Golden Bridge Investment | Kosdaq Composite vs. LB Investment | Kosdaq Composite vs. Stic Investments |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |