Correlation Between Kosdaq Composite and Taewoong CoLtd
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By analyzing existing cross correlation between Kosdaq Composite Index and Taewoong CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and Taewoong 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 Taewoong CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Taewoong CoLtd.
Diversification Opportunities for Kosdaq Composite and Taewoong CoLtd
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Taewoong is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Taewoong CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taewoong 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 Taewoong CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taewoong CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Taewoong CoLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Taewoong CoLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.29 times more return on investment than Taewoong CoLtd. However, Kosdaq Composite Index is 3.47 times less risky than Taewoong CoLtd. It trades about -0.25 of its potential returns per unit of risk. Taewoong CoLtd is currently generating about -0.21 per unit of risk. If you would invest 74,306 in Kosdaq Composite Index on September 1, 2024 and sell it today you would lose (6,444) from holding Kosdaq Composite Index or give up 8.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Taewoong CoLtd
Performance |
| Timeline |
Kosdaq Composite and Taewoong CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Taewoong CoLtd
Pair trading matchups for Taewoong CoLtd
Pair Trading with Kosdaq Composite and Taewoong CoLtd
The main advantage of trading using opposite Kosdaq Composite and Taewoong CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Taewoong 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 Taewoong CoLtd will offset losses from the drop in Taewoong CoLtd's long position.| Kosdaq Composite vs. Golden Bridge Investment | Kosdaq Composite vs. Lotte Data Communication | Kosdaq Composite vs. E Investment Development | Kosdaq Composite vs. Stic Investments |
| Taewoong CoLtd vs. Samsung Electronics Co | Taewoong CoLtd vs. Samsung Electronics Co | Taewoong CoLtd vs. LG Energy Solution | Taewoong CoLtd vs. SK Hynix |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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