Correlation Between KODEX SP500TR and KODEX Bond
Can any of the company-specific risk be diversified away by investing in both KODEX SP500TR 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 SP500TR 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 SP500TR and KODEX Bond SRI, you can compare the effects of market volatilities on KODEX SP500TR 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 SP500TR with a short position of KODEX Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of KODEX SP500TR and KODEX Bond.
Diversification Opportunities for KODEX SP500TR and KODEX Bond
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KODEX and KODEX is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding KODEX SP500TR 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 SP500TR 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 SP500TR 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 SP500TR i.e., KODEX SP500TR and KODEX Bond go up and down completely randomly.
Pair Corralation between KODEX SP500TR and KODEX Bond
Assuming the 90 days trading horizon KODEX SP500TR is expected to generate 3.13 times more return on investment than KODEX Bond. However, KODEX SP500TR is 3.13 times more volatile than KODEX Bond SRI. It trades about 0.13 of its potential returns per unit of risk. KODEX Bond SRI is currently generating about 0.0 per unit of risk. If you would invest 1,723,500 in KODEX SP500TR on October 26, 2024 and sell it today you would earn a total of 274,000 from holding KODEX SP500TR or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KODEX SP500TR vs. KODEX Bond SRI
Performance |
| Timeline |
| KODEX SP500TR |
| KODEX Bond SRI |
KODEX SP500TR and KODEX Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KODEX SP500TR and KODEX Bond
The main advantage of trading using opposite KODEX SP500TR and KODEX Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KODEX SP500TR 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 SP500TR vs. Busan Industrial Co | KODEX SP500TR vs. Busan Ind | KODEX SP500TR vs. Mirae Asset Daewoo | KODEX SP500TR vs. Shinhan WTI Futures |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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