Correlation Between Kosdaq Composite and InBody CoLtd
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By analyzing existing cross correlation between Kosdaq Composite Index and InBody CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and InBody 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 InBody CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and InBody CoLtd.
Diversification Opportunities for Kosdaq Composite and InBody CoLtd
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and InBody is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and InBody CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InBody 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 InBody CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InBody CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and InBody CoLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and InBody CoLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the InBody CoLtd. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.04 times less risky than InBody CoLtd. The index trades about -0.09 of its potential returns per unit of risk. The InBody CoLtd is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,585,000 in InBody CoLtd on September 2, 2024 and sell it today you would lose (335,000) from holding InBody CoLtd or give up 12.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. InBody CoLtd
Performance |
| Timeline |
Kosdaq Composite and InBody CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
InBody CoLtd
Pair trading matchups for InBody CoLtd
Pair Trading with Kosdaq Composite and InBody CoLtd
The main advantage of trading using opposite Kosdaq Composite and InBody CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, InBody 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 InBody CoLtd will offset losses from the drop in InBody CoLtd's long position.| Kosdaq Composite vs. DONGKUK TED METAL | Kosdaq Composite vs. Pungguk Ethanol Industrial | Kosdaq Composite vs. Duksan Hi Metal | Kosdaq Composite vs. Daiyang Metal Co |
| InBody CoLtd vs. Vieworks Co | InBody CoLtd vs. Genie Music | InBody CoLtd vs. Seegene | InBody CoLtd vs. Medy Tox |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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