Correlation Between Kosdaq Composite and INSUN Environmental
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By analyzing existing cross correlation between Kosdaq Composite Index and INSUN Environmental New, you can compare the effects of market volatilities on Kosdaq Composite and INSUN Environmental 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 INSUN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and INSUN Environmental.
Diversification Opportunities for Kosdaq Composite and INSUN Environmental
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kosdaq and INSUN is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and INSUN Environmental New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INSUN Environmental New 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 INSUN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INSUN Environmental New has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and INSUN Environmental go up and down completely randomly.
Pair Corralation between Kosdaq Composite and INSUN Environmental
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.89 times more return on investment than INSUN Environmental. However, Kosdaq Composite Index is 1.13 times less risky than INSUN Environmental. It trades about 0.01 of its potential returns per unit of risk. INSUN Environmental New is currently generating about -0.05 per unit of risk. If you would invest 67,992 in Kosdaq Composite Index on September 26, 2024 and sell it today you would earn a total of 19.00 from holding Kosdaq Composite Index or generate 0.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kosdaq Composite Index vs. INSUN Environmental New
Performance |
| Timeline |
Kosdaq Composite and INSUN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
INSUN Environmental New
Pair trading matchups for INSUN Environmental
Pair Trading with Kosdaq Composite and INSUN Environmental
The main advantage of trading using opposite Kosdaq Composite and INSUN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, INSUN Environmental 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 INSUN Environmental will offset losses from the drop in INSUN Environmental's long position.| Kosdaq Composite vs. Alton Sports CoLtd | Kosdaq Composite vs. TS Investment Corp | Kosdaq Composite vs. JYP Entertainment Corp | Kosdaq Composite vs. Barunson Entertainment Arts |
| INSUN Environmental vs. Korea Environment Technology | INSUN Environmental vs. Paradise Co | INSUN Environmental vs. Seoul Semiconductor Co | INSUN Environmental vs. JUSUNG ENGINEERING 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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