Correlation Between Kosdaq Composite and Daou Tech
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By analyzing existing cross correlation between Kosdaq Composite Index and Daou Tech, you can compare the effects of market volatilities on Kosdaq Composite and Daou Tech 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 Daou Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Daou Tech.
Diversification Opportunities for Kosdaq Composite and Daou Tech
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and Daou is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Daou Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daou Tech 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 Daou Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daou Tech has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Daou Tech go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Daou Tech
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 5.58 times less return on investment than Daou Tech. But when comparing it to its historical volatility, Kosdaq Composite Index is 1.28 times less risky than Daou Tech. It trades about 0.0 of its potential returns per unit of risk. Daou Tech is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,813,822 in Daou Tech on August 30, 2024 and sell it today you would earn a total of 21,178 from holding Daou Tech or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Daou Tech
Performance |
| Timeline |
Kosdaq Composite and Daou Tech Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Daou Tech
Pair trading matchups for Daou Tech
Pair Trading with Kosdaq Composite and Daou Tech
The main advantage of trading using opposite Kosdaq Composite and Daou Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Daou Tech 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 Daou Tech will offset losses from the drop in Daou Tech's long position.| Kosdaq Composite vs. RFTech Co | Kosdaq Composite vs. Yura Tech Co | Kosdaq Composite vs. Hwangkum Steel Technology | Kosdaq Composite vs. Woori Technology |
| Daou Tech vs. Cube Entertainment | Daou Tech vs. Dreamus Company | Daou Tech vs. LG Energy Solution | Daou Tech vs. Dongwon System |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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