Correlation Between Kosdaq Composite and Daesung Private
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By analyzing existing cross correlation between Kosdaq Composite Index and Daesung Private Equity, you can compare the effects of market volatilities on Kosdaq Composite and Daesung Private 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 Daesung Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Daesung Private.
Diversification Opportunities for Kosdaq Composite and Daesung Private
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Daesung is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Daesung Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung Private Equity 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 Daesung Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Private Equity has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Daesung Private go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Daesung Private
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.42 times more return on investment than Daesung Private. However, Kosdaq Composite Index is 2.36 times less risky than Daesung Private. It trades about -0.1 of its potential returns per unit of risk. Daesung Private Equity is currently generating about -0.05 per unit of risk. If you would invest 87,126 in Kosdaq Composite Index on September 3, 2024 and sell it today you would lose (19,307) from holding Kosdaq Composite Index or give up 22.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Daesung Private Equity
Performance |
| Timeline |
Kosdaq Composite and Daesung Private Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Daesung Private Equity
Pair trading matchups for Daesung Private
Pair Trading with Kosdaq Composite and Daesung Private
The main advantage of trading using opposite Kosdaq Composite and Daesung Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Daesung Private 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 Daesung Private will offset losses from the drop in Daesung Private's long position.The idea behind Kosdaq Composite Index and Daesung Private Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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