Correlation Between Kosdaq Composite and DIO
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By analyzing existing cross correlation between Kosdaq Composite Index and DIO Corporation, you can compare the effects of market volatilities on Kosdaq Composite and DIO 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 DIO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and DIO.
Diversification Opportunities for Kosdaq Composite and DIO
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kosdaq and DIO is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and DIO Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIO Corporation 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 DIO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIO Corporation has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and DIO go up and down completely randomly.
Pair Corralation between Kosdaq Composite and DIO
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 9.06 times less return on investment than DIO. But when comparing it to its historical volatility, Kosdaq Composite Index is 1.76 times less risky than DIO. It trades about 0.0 of its potential returns per unit of risk. DIO Corporation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,850,000 in DIO Corporation on September 5, 2024 and sell it today you would lose (165,000) from holding DIO Corporation or give up 8.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. DIO Corp.
Performance |
| Timeline |
Kosdaq Composite and DIO Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
DIO Corporation
Pair trading matchups for DIO
Pair Trading with Kosdaq Composite and DIO
The main advantage of trading using opposite Kosdaq Composite and DIO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, DIO 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 DIO will offset losses from the drop in DIO's long position.| Kosdaq Composite vs. Kyeryong Construction Industrial | Kosdaq Composite vs. Pungguk Ethanol Industrial | Kosdaq Composite vs. Jeju Air Co | Kosdaq Composite vs. Seoyon Topmetal 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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