Correlation Between Kosdaq Composite and IC Technology
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By analyzing existing cross correlation between Kosdaq Composite Index and IC Technology Co, you can compare the effects of market volatilities on Kosdaq Composite and IC Technology 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 IC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and IC Technology.
Diversification Opportunities for Kosdaq Composite and IC Technology
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and 052860 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and IC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IC Technology 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 IC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IC Technology has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and IC Technology go up and down completely randomly.
Pair Corralation between Kosdaq Composite and IC Technology
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the IC Technology. In addition to that, Kosdaq Composite is 1.08 times more volatile than IC Technology Co. It trades about -0.19 of its total potential returns per unit of risk. IC Technology Co is currently generating about -0.04 per unit of volatility. If you would invest 162,000 in IC Technology Co on August 29, 2024 and sell it today you would lose (2,300) from holding IC Technology Co or give up 1.42% 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. IC Technology Co
Performance |
| Timeline |
Kosdaq Composite and IC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
IC Technology Co
Pair trading matchups for IC Technology
Pair Trading with Kosdaq Composite and IC Technology
The main advantage of trading using opposite Kosdaq Composite and IC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, IC Technology 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 IC Technology will offset losses from the drop in IC Technology's long position.| Kosdaq Composite vs. Korea Air Svc | Kosdaq Composite vs. Mobileleader CoLtd | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. TOPMATERIAL LTD |
| IC Technology vs. Daou Data Corp | IC Technology vs. Busan Industrial Co | IC Technology vs. Busan Ind | IC Technology vs. Shinhan WTI Futures |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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