Correlation Between Kosdaq Composite and Kginicis CoLtd
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By analyzing existing cross correlation between Kosdaq Composite Index and Kginicis CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and Kginicis CoLtd 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 Kginicis CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Kginicis CoLtd.
Diversification Opportunities for Kosdaq Composite and Kginicis CoLtd
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Kginicis is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Kginicis CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kginicis CoLtd 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 Kginicis CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kginicis CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Kginicis CoLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Kginicis CoLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 1.29 times more return on investment than Kginicis CoLtd. However, Kosdaq Composite is 1.29 times more volatile than Kginicis CoLtd. It trades about -0.07 of its potential returns per unit of risk. Kginicis CoLtd is currently generating about -0.11 per unit of risk. If you would invest 83,199 in Kosdaq Composite Index on August 28, 2024 and sell it today you would lose (13,368) from holding Kosdaq Composite Index or give up 16.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Kginicis CoLtd
Performance |
| Timeline |
Kosdaq Composite and Kginicis CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Kginicis CoLtd
Pair trading matchups for Kginicis CoLtd
Pair Trading with Kosdaq Composite and Kginicis CoLtd
The main advantage of trading using opposite Kosdaq Composite and Kginicis CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Kginicis CoLtd 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 Kginicis CoLtd will offset losses from the drop in Kginicis CoLtd's long position.| Kosdaq Composite vs. Shinil Electronics Co | Kosdaq Composite vs. Sungdo Engineering Construction | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. ENERGYMACHINERY KOREA CoLtd |
| Kginicis CoLtd vs. NHN KCP Corp | Kginicis CoLtd vs. AfreecaTV Co | Kginicis CoLtd vs. LEENO Industrial | Kginicis CoLtd vs. CJ ENM |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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