Correlation Between Kosdaq Composite and KCC Engineering
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By analyzing existing cross correlation between Kosdaq Composite Index and KCC Engineering Construction, you can compare the effects of market volatilities on Kosdaq Composite and KCC Engineering 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 KCC Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and KCC Engineering.
Diversification Opportunities for Kosdaq Composite and KCC Engineering
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and KCC is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and KCC Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCC Engineering Cons 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 KCC Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCC Engineering Cons has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and KCC Engineering go up and down completely randomly.
Pair Corralation between Kosdaq Composite and KCC Engineering
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the KCC Engineering. In addition to that, Kosdaq Composite is 1.27 times more volatile than KCC Engineering Construction. It trades about -0.01 of its total potential returns per unit of risk. KCC Engineering Construction is currently generating about 0.03 per unit of volatility. If you would invest 408,000 in KCC Engineering Construction on September 14, 2024 and sell it today you would earn a total of 4,000 from holding KCC Engineering Construction or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. KCC Engineering Construction
Performance |
| Timeline |
Kosdaq Composite and KCC Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
KCC Engineering Construction
Pair trading matchups for KCC Engineering
Pair Trading with Kosdaq Composite and KCC Engineering
The main advantage of trading using opposite Kosdaq Composite and KCC Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, KCC Engineering 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 KCC Engineering will offset losses from the drop in KCC Engineering's long position.| Kosdaq Composite vs. Nice Information Telecommunication | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. Korea Information Communications | Kosdaq Composite vs. Mobile Appliance |
| KCC Engineering vs. Korea New Network | KCC Engineering vs. Solution Advanced Technology | KCC Engineering vs. Busan Industrial Co | KCC Engineering vs. Busan Ind |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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