Correlation Between Kosdaq Composite and BYON
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By analyzing existing cross correlation between Kosdaq Composite Index and BYON Co, you can compare the effects of market volatilities on Kosdaq Composite and BYON 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 BYON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and BYON.
Diversification Opportunities for Kosdaq Composite and BYON
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kosdaq and BYON is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and BYON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYON 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 BYON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYON has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and BYON go up and down completely randomly.
Pair Corralation between Kosdaq Composite and BYON
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the BYON. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 3.76 times less risky than BYON. The index trades about -0.25 of its potential returns per unit of risk. The BYON Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 62,000 in BYON Co on September 1, 2024 and sell it today you would earn a total of 21,000 from holding BYON Co or generate 33.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kosdaq Composite Index vs. BYON Co
Performance |
| Timeline |
Kosdaq Composite and BYON Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
BYON Co
Pair trading matchups for BYON
Pair Trading with Kosdaq Composite and BYON
The main advantage of trading using opposite Kosdaq Composite and BYON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, BYON 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 BYON will offset losses from the drop in BYON's long position.| Kosdaq Composite vs. Golden Bridge Investment | Kosdaq Composite vs. Lotte Data Communication | Kosdaq Composite vs. E Investment Development | Kosdaq Composite vs. Stic Investments |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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