Correlation Between Kosdaq Composite and Dongbu Insurance
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By analyzing existing cross correlation between Kosdaq Composite Index and Dongbu Insurance Co, you can compare the effects of market volatilities on Kosdaq Composite and Dongbu Insurance 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 Dongbu Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Dongbu Insurance.
Diversification Opportunities for Kosdaq Composite and Dongbu Insurance
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and Dongbu is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Dongbu Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbu Insurance 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 Dongbu Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbu Insurance has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Dongbu Insurance go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Dongbu Insurance
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Dongbu Insurance. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.51 times less risky than Dongbu Insurance. The index trades about -0.07 of its potential returns per unit of risk. The Dongbu Insurance Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 10,240,000 in Dongbu Insurance Co on August 28, 2024 and sell it today you would earn a total of 690,000 from holding Dongbu Insurance Co or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Dongbu Insurance Co
Performance |
| Timeline |
Kosdaq Composite and Dongbu Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Dongbu Insurance Co
Pair trading matchups for Dongbu Insurance
Pair Trading with Kosdaq Composite and Dongbu Insurance
The main advantage of trading using opposite Kosdaq Composite and Dongbu Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Dongbu Insurance 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 Dongbu Insurance will offset losses from the drop in Dongbu Insurance's long position.| Kosdaq Composite vs. Shinil Electronics Co | Kosdaq Composite vs. Sungdo Engineering Construction | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. ENERGYMACHINERY KOREA CoLtd |
| Dongbu Insurance vs. AptaBio Therapeutics | Dongbu Insurance vs. Daewoo SBI SPAC | Dongbu Insurance vs. Dream Security co | Dongbu Insurance vs. Microfriend |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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