Correlation Between Kosdaq Composite and Interflex
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By analyzing existing cross correlation between Kosdaq Composite Index and Interflex Co, you can compare the effects of market volatilities on Kosdaq Composite and Interflex 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 Interflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Interflex.
Diversification Opportunities for Kosdaq Composite and Interflex
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Interflex is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Interflex Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interflex 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 Interflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interflex has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Interflex go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Interflex
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.54 times more return on investment than Interflex. However, Kosdaq Composite Index is 1.85 times less risky than Interflex. It trades about -0.1 of its potential returns per unit of risk. Interflex Co is currently generating about -0.13 per unit of risk. If you would invest 84,799 in Kosdaq Composite Index on August 25, 2024 and sell it today you would lose (17,044) from holding Kosdaq Composite Index or give up 20.1% 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. Interflex Co
Performance |
| Timeline |
Kosdaq Composite and Interflex Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Interflex Co
Pair trading matchups for Interflex
Pair Trading with Kosdaq Composite and Interflex
The main advantage of trading using opposite Kosdaq Composite and Interflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Interflex 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 Interflex will offset losses from the drop in Interflex'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 |
| Interflex vs. Korea Real Estate | Interflex vs. Korea Ratings Co | Interflex vs. IQuest Co | Interflex 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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