Correlation Between Kosdaq Composite and CNH
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By analyzing existing cross correlation between Kosdaq Composite Index and CNH Co, you can compare the effects of market volatilities on Kosdaq Composite and CNH 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 CNH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and CNH.
Diversification Opportunities for Kosdaq Composite and CNH
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and CNH is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and CNH Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNH Co 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 CNH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNH Co has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and CNH go up and down completely randomly.
Pair Corralation between Kosdaq Composite and CNH
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.13 times more return on investment than CNH. However, Kosdaq Composite Index is 7.54 times less risky than CNH. It trades about -0.3 of its potential returns per unit of risk. CNH Co is currently generating about -0.9 per unit of risk. If you would invest 74,048 in Kosdaq Composite Index on August 27, 2024 and sell it today you would lose (6,347) from holding Kosdaq Composite Index or give up 8.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 28.57% |
| Values | Daily Returns |
Kosdaq Composite Index vs. CNH Co
Performance |
| Timeline |
Kosdaq Composite and CNH Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
CNH Co
Pair trading matchups for CNH
Pair Trading with Kosdaq Composite and CNH
The main advantage of trading using opposite Kosdaq Composite and CNH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, CNH 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 CNH will offset losses from the drop in CNH's long position.| Kosdaq Composite vs. Korean Air Lines | Kosdaq Composite vs. NH Investment Securities | Kosdaq Composite vs. Hana Materials | Kosdaq Composite vs. Nh Investment And |
| CNH vs. Hana Technology Co | CNH vs. KG Eco Technology | CNH vs. ABOV Semiconductor Co | CNH vs. NewFlex Technology 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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