Correlation Between Kosdaq Composite and Nepes
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By analyzing existing cross correlation between Kosdaq Composite Index and Nepes, you can compare the effects of market volatilities on Kosdaq Composite and Nepes 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 Nepes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Nepes.
Diversification Opportunities for Kosdaq Composite and Nepes
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kosdaq and Nepes is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Nepes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nepes 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 Nepes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nepes has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Nepes go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Nepes
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.52 times more return on investment than Nepes. However, Kosdaq Composite Index is 1.92 times less risky than Nepes. It trades about -0.09 of its potential returns per unit of risk. Nepes is currently generating about -0.2 per unit of risk. If you would invest 75,604 in Kosdaq Composite Index on August 29, 2024 and sell it today you would lose (6,391) from holding Kosdaq Composite Index or give up 8.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Nepes
Performance |
| Timeline |
Kosdaq Composite and Nepes Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Nepes
Pair trading matchups for Nepes
Pair Trading with Kosdaq Composite and Nepes
The main advantage of trading using opposite Kosdaq Composite and Nepes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Nepes 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 Nepes will offset losses from the drop in Nepes' long position.| Kosdaq Composite vs. Korea Air Svc | Kosdaq Composite vs. Mobileleader CoLtd | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. TOPMATERIAL LTD |
| Nepes vs. Dongjin Semichem Co | Nepes vs. SFA Semicon Co | Nepes vs. Seoul Semiconductor Co | Nepes vs. EO Technics 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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