Correlation Between Kosdaq Composite and Polaris Office
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By analyzing existing cross correlation between Kosdaq Composite Index and Polaris Office Corp, you can compare the effects of market volatilities on Kosdaq Composite and Polaris Office 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 Polaris Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Polaris Office.
Diversification Opportunities for Kosdaq Composite and Polaris Office
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kosdaq and Polaris is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Polaris Office Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polaris Office Corp 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 Polaris Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polaris Office Corp has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Polaris Office go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Polaris Office
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Polaris Office. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 2.91 times less risky than Polaris Office. The index trades about -0.21 of its potential returns per unit of risk. The Polaris Office Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 498,000 in Polaris Office Corp on August 26, 2024 and sell it today you would earn a total of 52,000 from holding Polaris Office Corp or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Polaris Office Corp
Performance |
| Timeline |
Kosdaq Composite and Polaris Office Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Polaris Office Corp
Pair trading matchups for Polaris Office
Pair Trading with Kosdaq Composite and Polaris Office
The main advantage of trading using opposite Kosdaq Composite and Polaris Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Polaris Office 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 Polaris Office will offset losses from the drop in Polaris Office's long position.| Kosdaq Composite vs. Kbi Metal Co | Kosdaq Composite vs. Shinsung Delta Tech | Kosdaq Composite vs. Woori Technology | Kosdaq Composite vs. Dongil Metal Co |
| Polaris Office vs. Korea Real Estate | Polaris Office vs. Korea Ratings Co | Polaris Office vs. IQuest Co | Polaris Office 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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