Correlation Between LB Investment and Kosdaq Composite
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By analyzing existing cross correlation between LB Investment and Kosdaq Composite Index, you can compare the effects of market volatilities on LB 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 LB Investment with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Investment and Kosdaq Composite.
Diversification Opportunities for LB Investment and Kosdaq Composite
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 309960 and Kosdaq is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding LB Investment 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 LB 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 LB Investment 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 LB Investment i.e., LB Investment and Kosdaq Composite go up and down completely randomly.
Pair Corralation between LB Investment and Kosdaq Composite
Assuming the 90 days trading horizon LB Investment is expected to under-perform the Kosdaq Composite. In addition to that, LB Investment is 1.29 times more volatile than Kosdaq Composite Index. It trades about -0.12 of its total potential returns per unit of risk. Kosdaq Composite Index is currently generating about -0.07 per unit of volatility. If you would invest 81,212 in Kosdaq Composite Index on September 21, 2024 and sell it today you would lose (12,776) from holding Kosdaq Composite Index or give up 15.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LB Investment vs. Kosdaq Composite Index
Performance |
| Timeline |
LB Investment and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
LB Investment
Pair trading matchups for LB Investment
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with LB Investment and Kosdaq Composite
The main advantage of trading using opposite LB Investment and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB 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.| LB Investment vs. Samsung Electronics Co | LB Investment vs. Samsung Electronics Co | LB Investment vs. LG Energy Solution | LB Investment vs. SK Hynix |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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