Correlation Between Kosdaq Composite and Tongyang
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By analyzing existing cross correlation between Kosdaq Composite Index and Tongyang, you can compare the effects of market volatilities on Kosdaq Composite and Tongyang 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 Kosdaq Composite with a short position of Tongyang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Tongyang.
Diversification Opportunities for Kosdaq Composite and Tongyang
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kosdaq and Tongyang is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Tongyang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyang and Kosdaq Composite 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 Kosdaq Composite Index are associated (or correlated) with Tongyang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyang has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Tongyang go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Tongyang
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.56 times more return on investment than Tongyang. However, Kosdaq Composite Index is 1.77 times less risky than Tongyang. It trades about 0.26 of its potential returns per unit of risk. Tongyang is currently generating about -0.03 per unit of risk. If you would invest 72,829 in Kosdaq Composite Index on November 28, 2024 and sell it today you would earn a total of 4,521 from holding Kosdaq Composite Index or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Tongyang
Performance |
| Timeline |
Kosdaq Composite and Tongyang Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Tongyang
Pair trading matchups for Tongyang
Pair Trading with Kosdaq Composite and Tongyang
The main advantage of trading using opposite Kosdaq Composite and Tongyang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Tongyang 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 Tongyang will offset losses from the drop in Tongyang's long position.| Kosdaq Composite vs. Digital Power Communications | Kosdaq Composite vs. Chorokbaem Healthcare Co | Kosdaq Composite vs. LG Household Healthcare | Kosdaq Composite vs. PlayD Co |
| Tongyang vs. Sewoon Medical Co | Tongyang vs. Hyunwoo Industrial Co | Tongyang vs. Dongil Metal Co | Tongyang vs. Lotte Rental 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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