Correlation Between Kosdaq Composite and Signetics
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By analyzing existing cross correlation between Kosdaq Composite Index and Signetics, you can compare the effects of market volatilities on Kosdaq Composite and Signetics 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 Signetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Signetics.
Diversification Opportunities for Kosdaq Composite and Signetics
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kosdaq and Signetics is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Signetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signetics 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 Signetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signetics has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Signetics go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Signetics
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.38 times more return on investment than Signetics. However, Kosdaq Composite Index is 2.6 times less risky than Signetics. It trades about 0.0 of its potential returns per unit of risk. Signetics is currently generating about 0.0 per unit of risk. If you would invest 71,082 in Kosdaq Composite Index on September 3, 2024 and sell it today you would lose (3,263) from holding Kosdaq Composite Index or give up 4.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Signetics
Performance |
| Timeline |
Kosdaq Composite and Signetics Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Signetics
Pair trading matchups for Signetics
Pair Trading with Kosdaq Composite and Signetics
The main advantage of trading using opposite Kosdaq Composite and Signetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Signetics 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 Signetics will offset losses from the drop in Signetics' long position.The idea behind Kosdaq Composite Index and Signetics 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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