Correlation Between Kosdaq Composite and Cho Bi
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By analyzing existing cross correlation between Kosdaq Composite Index and Cho Bi, you can compare the effects of market volatilities on Kosdaq Composite and Cho Bi 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 Cho Bi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Cho Bi.
Diversification Opportunities for Kosdaq Composite and Cho Bi
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Cho is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Cho Bi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cho Bi 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 Cho Bi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cho Bi has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Cho Bi go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Cho Bi
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.67 times more return on investment than Cho Bi. However, Kosdaq Composite Index is 1.5 times less risky than Cho Bi. It trades about -0.04 of its potential returns per unit of risk. Cho Bi is currently generating about -0.04 per unit of risk. If you would invest 88,576 in Kosdaq Composite Index on September 2, 2024 and sell it today you would lose (20,757) from holding Kosdaq Composite Index or give up 23.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Cho Bi
Performance |
| Timeline |
Kosdaq Composite and Cho Bi Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Cho Bi
Pair trading matchups for Cho Bi
Pair Trading with Kosdaq Composite and Cho Bi
The main advantage of trading using opposite Kosdaq Composite and Cho Bi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Cho Bi 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 Cho Bi will offset losses from the drop in Cho Bi's long position.| Kosdaq Composite vs. DONGKUK TED METAL | Kosdaq Composite vs. Pungguk Ethanol Industrial | Kosdaq Composite vs. Duksan Hi Metal | Kosdaq Composite vs. Daiyang Metal Co |
| Cho Bi vs. Konan Technology | Cho Bi vs. Hwangkum Steel Technology | Cho Bi vs. Bohae Brewery | Cho Bi vs. Dongbang Transport Logistics |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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