Correlation Between Kosdaq Composite and Bosung Power
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kosdaq Composite Index and Bosung Power Technology, you can compare the effects of market volatilities on Kosdaq Composite and Bosung Power 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 Bosung Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Bosung Power.
Diversification Opportunities for Kosdaq Composite and Bosung Power
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kosdaq and Bosung is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Bosung Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosung Power Technology 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 Bosung Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosung Power Technology has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Bosung Power go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Bosung Power
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Bosung Power. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.09 times less risky than Bosung Power. The index trades about -0.25 of its potential returns per unit of risk. The Bosung Power Technology is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 304,000 in Bosung Power Technology on September 1, 2024 and sell it today you would lose (15,000) from holding Bosung Power Technology or give up 4.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Bosung Power Technology
Performance |
| Timeline |
Kosdaq Composite and Bosung Power Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Bosung Power Technology
Pair trading matchups for Bosung Power
Pair Trading with Kosdaq Composite and Bosung Power
The main advantage of trading using opposite Kosdaq Composite and Bosung Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Bosung Power 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 Bosung Power will offset losses from the drop in Bosung Power's long position.| Kosdaq Composite vs. Golden Bridge Investment | Kosdaq Composite vs. Lotte Data Communication | Kosdaq Composite vs. E Investment Development | Kosdaq Composite vs. Stic Investments |
| Bosung Power vs. Korea New Network | Bosung Power vs. ICD Co | Bosung Power vs. DYPNF CoLtd | Bosung Power vs. Busan Industrial 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |