Correlation Between Kosdaq Composite and Synopex
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By analyzing existing cross correlation between Kosdaq Composite Index and Synopex, you can compare the effects of market volatilities on Kosdaq Composite and Synopex 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 Synopex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Synopex.
Diversification Opportunities for Kosdaq Composite and Synopex
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Synopex is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Synopex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synopex 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 Synopex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synopex has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Synopex go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Synopex
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.43 times more return on investment than Synopex. However, Kosdaq Composite Index is 2.3 times less risky than Synopex. It trades about -0.09 of its potential returns per unit of risk. Synopex is currently generating about -0.09 per unit of risk. If you would invest 76,250 in Kosdaq Composite Index on August 28, 2024 and sell it today you would lose (6,419) from holding Kosdaq Composite Index or give up 8.42% 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. Synopex
Performance |
| Timeline |
Kosdaq Composite and Synopex Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Synopex
Pair trading matchups for Synopex
Pair Trading with Kosdaq Composite and Synopex
The main advantage of trading using opposite Kosdaq Composite and Synopex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Synopex 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 Synopex will offset losses from the drop in Synopex's long position.| Kosdaq Composite vs. Shinil Electronics Co | Kosdaq Composite vs. Sungdo Engineering Construction | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. ENERGYMACHINERY KOREA CoLtd |
| Synopex vs. Korea Real Estate | Synopex vs. Korea Ratings Co | Synopex vs. IQuest Co | Synopex vs. Wonbang Tech 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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