Correlation Between KODEX 200LONGKOSDAQ150 and KODEX Bond
Can any of the company-specific risk be diversified away by investing in both KODEX 200LONGKOSDAQ150 and KODEX Bond at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KODEX 200LONGKOSDAQ150 and KODEX Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KODEX 200LONGKOSDAQ150SHORT Futures and KODEX Bond SRI, you can compare the effects of market volatilities on KODEX 200LONGKOSDAQ150 and KODEX Bond 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 KODEX 200LONGKOSDAQ150 with a short position of KODEX Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of KODEX 200LONGKOSDAQ150 and KODEX Bond.
Diversification Opportunities for KODEX 200LONGKOSDAQ150 and KODEX Bond
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between KODEX and KODEX is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding KODEX 200LONGKOSDAQ150SHORT Fu and KODEX Bond SRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KODEX Bond SRI and KODEX 200LONGKOSDAQ150 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 KODEX 200LONGKOSDAQ150SHORT Futures are associated (or correlated) with KODEX Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KODEX Bond SRI has no effect on the direction of KODEX 200LONGKOSDAQ150 i.e., KODEX 200LONGKOSDAQ150 and KODEX Bond go up and down completely randomly.
Pair Corralation between KODEX 200LONGKOSDAQ150 and KODEX Bond
Assuming the 90 days trading horizon KODEX 200LONGKOSDAQ150SHORT Futures is expected to under-perform the KODEX Bond. In addition to that, KODEX 200LONGKOSDAQ150 is 3.6 times more volatile than KODEX Bond SRI. It trades about -0.02 of its total potential returns per unit of risk. KODEX Bond SRI is currently generating about 0.03 per unit of volatility. If you would invest 9,671,000 in KODEX Bond SRI on November 5, 2024 and sell it today you would earn a total of 445,500 from holding KODEX Bond SRI or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KODEX 200LONGKOSDAQ150SHORT Fu vs. KODEX Bond SRI
Performance |
| Timeline |
| KODEX 200LONGKOSDAQ150 |
| KODEX Bond SRI |
KODEX 200LONGKOSDAQ150 and KODEX Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KODEX 200LONGKOSDAQ150 and KODEX Bond
The main advantage of trading using opposite KODEX 200LONGKOSDAQ150 and KODEX Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KODEX 200LONGKOSDAQ150 position performs unexpectedly, KODEX Bond 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 KODEX Bond will offset losses from the drop in KODEX Bond's long position.| KODEX 200LONGKOSDAQ150 vs. KODEX K Renewable Energy | KODEX 200LONGKOSDAQ150 vs. KODEX SP500TR | KODEX 200LONGKOSDAQ150 vs. KODEX Metaverse Nasdaq | KODEX 200LONGKOSDAQ150 vs. KODEX KOSPI LargeCap |
| KODEX Bond vs. KODEX 200LONGKOSDAQ150SHORT Futures | KODEX Bond vs. KODEX K Renewable Energy | KODEX Bond vs. KODEX SP500TR | KODEX Bond vs. KODEX Metaverse Nasdaq |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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