Correlation Between Kosdaq Composite and Dreamus
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By analyzing existing cross correlation between Kosdaq Composite Index and Dreamus Company, you can compare the effects of market volatilities on Kosdaq Composite and Dreamus 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 Dreamus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Dreamus.
Diversification Opportunities for Kosdaq Composite and Dreamus
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and Dreamus is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Dreamus Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreamus Company 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 Dreamus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreamus Company has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Dreamus go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Dreamus
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.42 times more return on investment than Dreamus. However, Kosdaq Composite Index is 2.4 times less risky than Dreamus. It trades about -0.08 of its potential returns per unit of risk. Dreamus Company is currently generating about -0.08 per unit of risk. If you would invest 86,296 in Kosdaq Composite Index on August 27, 2024 and sell it today you would lose (18,595) from holding Kosdaq Composite Index or give up 21.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Dreamus Company
Performance |
| Timeline |
Kosdaq Composite and Dreamus Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Dreamus Company
Pair trading matchups for Dreamus
Pair Trading with Kosdaq Composite and Dreamus
The main advantage of trading using opposite Kosdaq Composite and Dreamus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Dreamus 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 Dreamus will offset losses from the drop in Dreamus' long position.| Kosdaq Composite vs. Korean Air Lines | Kosdaq Composite vs. NH Investment Securities | Kosdaq Composite vs. Hana Materials | Kosdaq Composite vs. Nh Investment And |
| Dreamus vs. Ni Steel | Dreamus vs. Daehan Steel | Dreamus vs. SH Energy Chemical | Dreamus vs. Chin Yang Chemical |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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