Correlation Between Kosdaq Composite and Phoenix Materials
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kosdaq Composite Index and Phoenix Materials Co, you can compare the effects of market volatilities on Kosdaq Composite and Phoenix Materials 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 Phoenix Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Phoenix Materials.
Diversification Opportunities for Kosdaq Composite and Phoenix Materials
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Phoenix is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Phoenix Materials Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Materials 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 Phoenix Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Materials has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Phoenix Materials go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Phoenix Materials
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Phoenix Materials. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 3.29 times less risky than Phoenix Materials. The index trades about -0.05 of its potential returns per unit of risk. The Phoenix Materials Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 107,500 in Phoenix Materials Co on September 1, 2024 and sell it today you would lose (38,000) from holding Phoenix Materials Co or give up 35.35% 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. Phoenix Materials Co
Performance |
| Timeline |
Kosdaq Composite and Phoenix Materials Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Phoenix Materials Co
Pair trading matchups for Phoenix Materials
Pair Trading with Kosdaq Composite and Phoenix Materials
The main advantage of trading using opposite Kosdaq Composite and Phoenix Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Phoenix Materials 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 Phoenix Materials will offset losses from the drop in Phoenix Materials' 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 |
| Phoenix Materials vs. Dongsin Engineering Construction | Phoenix Materials vs. Doosan Fuel Cell | Phoenix Materials vs. Daishin Balance 1 | Phoenix Materials vs. Total Soft Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |