Correlation Between Kosdaq Composite and Daekyung Machinery
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By analyzing existing cross correlation between Kosdaq Composite Index and Daekyung Machinery Engineering, you can compare the effects of market volatilities on Kosdaq Composite and Daekyung Machinery 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 Daekyung Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Daekyung Machinery.
Diversification Opportunities for Kosdaq Composite and Daekyung Machinery
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kosdaq and Daekyung is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Daekyung Machinery Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daekyung Machinery 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 Daekyung Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daekyung Machinery has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Daekyung Machinery go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Daekyung Machinery
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Daekyung Machinery. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 2.33 times less risky than Daekyung Machinery. The index trades about -0.24 of its potential returns per unit of risk. The Daekyung Machinery Engineering is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 41,500 in Daekyung Machinery Engineering on August 25, 2024 and sell it today you would earn a total of 11,000 from holding Daekyung Machinery Engineering or generate 26.51% 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. Daekyung Machinery Engineering
Performance |
| Timeline |
Kosdaq Composite and Daekyung Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Daekyung Machinery Engineering
Pair trading matchups for Daekyung Machinery
Pair Trading with Kosdaq Composite and Daekyung Machinery
The main advantage of trading using opposite Kosdaq Composite and Daekyung Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Daekyung Machinery 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 Daekyung Machinery will offset losses from the drop in Daekyung Machinery's long position.| Kosdaq Composite vs. Nam Hwa Construction | Kosdaq Composite vs. Dongbang Ship Machinery | Kosdaq Composite vs. SEOJEON ELECTRIC MACHINERY | Kosdaq Composite vs. Heungkuk Metaltech CoLtd |
| Daekyung Machinery vs. AptaBio Therapeutics | Daekyung Machinery vs. Daewoo SBI SPAC | Daekyung Machinery vs. Dream Security co | Daekyung Machinery 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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