Correlation Between Kosdaq Composite and DongWon Development
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By analyzing existing cross correlation between Kosdaq Composite Index and DongWon Development CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and DongWon Development 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 DongWon Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and DongWon Development.
Diversification Opportunities for Kosdaq Composite and DongWon Development
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and DongWon is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and DongWon Development CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DongWon Development CoLtd 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 DongWon Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DongWon Development CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and DongWon Development go up and down completely randomly.
Pair Corralation between Kosdaq Composite and DongWon Development
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the DongWon Development. In addition to that, Kosdaq Composite is 1.14 times more volatile than DongWon Development CoLtd. It trades about -0.08 of its total potential returns per unit of risk. DongWon Development CoLtd is currently generating about -0.09 per unit of volatility. If you would invest 295,000 in DongWon Development CoLtd on September 1, 2024 and sell it today you would lose (61,000) from holding DongWon Development CoLtd or give up 20.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. DongWon Development CoLtd
Performance |
| Timeline |
Kosdaq Composite and DongWon Development Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
DongWon Development CoLtd
Pair trading matchups for DongWon Development
Pair Trading with Kosdaq Composite and DongWon Development
The main advantage of trading using opposite Kosdaq Composite and DongWon Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, DongWon Development 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 DongWon Development will offset losses from the drop in DongWon Development'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 |
| DongWon Development vs. Busan Industrial Co | DongWon Development vs. Busan Ind | DongWon Development vs. Mirae Asset Daewoo | DongWon Development vs. Finebesteel |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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