Correlation Between Kosdaq Composite and InfoBank
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By analyzing existing cross correlation between Kosdaq Composite Index and InfoBank, you can compare the effects of market volatilities on Kosdaq Composite and InfoBank 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 InfoBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and InfoBank.
Diversification Opportunities for Kosdaq Composite and InfoBank
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kosdaq and InfoBank is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and InfoBank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InfoBank 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 InfoBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InfoBank has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and InfoBank go up and down completely randomly.
Pair Corralation between Kosdaq Composite and InfoBank
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.45 times more return on investment than InfoBank. However, Kosdaq Composite Index is 2.23 times less risky than InfoBank. It trades about 0.0 of its potential returns per unit of risk. InfoBank is currently generating about -0.01 per unit of risk. If you would invest 71,814 in Kosdaq Composite Index on August 28, 2024 and sell it today you would lose (1,983) from holding Kosdaq Composite Index or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. InfoBank
Performance |
| Timeline |
Kosdaq Composite and InfoBank Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
InfoBank
Pair trading matchups for InfoBank
Pair Trading with Kosdaq Composite and InfoBank
The main advantage of trading using opposite Kosdaq Composite and InfoBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, InfoBank 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 InfoBank will offset losses from the drop in InfoBank'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 |
| InfoBank vs. Korea Real Estate | InfoBank vs. Korea Ratings Co | InfoBank vs. IQuest Co | InfoBank vs. Wonbang Tech 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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