Correlation Between Kosdaq Composite and Korea Environment
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By analyzing existing cross correlation between Kosdaq Composite Index and Korea Environment Technology, you can compare the effects of market volatilities on Kosdaq Composite and Korea Environment 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 Korea Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Korea Environment.
Diversification Opportunities for Kosdaq Composite and Korea Environment
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kosdaq and Korea is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Korea Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Environment 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 Korea Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Environment has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Korea Environment go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Korea Environment
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 2.17 times less return on investment than Korea Environment. In addition to that, Kosdaq Composite is 1.02 times more volatile than Korea Environment Technology. It trades about 0.12 of its total potential returns per unit of risk. Korea Environment Technology is currently generating about 0.26 per unit of volatility. If you would invest 839,938 in Korea Environment Technology on October 15, 2024 and sell it today you would earn a total of 53,062 from holding Korea Environment Technology or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Korea Environment Technology
Performance |
| Timeline |
Kosdaq Composite and Korea Environment Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Korea Environment Technology
Pair trading matchups for Korea Environment
Pair Trading with Kosdaq Composite and Korea Environment
The main advantage of trading using opposite Kosdaq Composite and Korea Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Korea Environment 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 Korea Environment will offset losses from the drop in Korea Environment's long position.| Kosdaq Composite vs. Shinsegae Food | Kosdaq Composite vs. Digital Multimedia Technology | Kosdaq Composite vs. Cube Entertainment | Kosdaq Composite vs. Tway Air Co |
| Korea Environment vs. INSUN Environmental New | Korea Environment vs. LEENO Industrial | Korea Environment vs. Kmw Inc | Korea Environment vs. NICE Information Service |
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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