Correlation Between Kosdaq Composite and WISE ITech
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By analyzing existing cross correlation between Kosdaq Composite Index and WISE iTech Co, you can compare the effects of market volatilities on Kosdaq Composite and WISE ITech 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 WISE ITech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and WISE ITech.
Diversification Opportunities for Kosdaq Composite and WISE ITech
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and WISE is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and WISE iTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WISE iTech 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 WISE ITech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WISE iTech has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and WISE ITech go up and down completely randomly.
Pair Corralation between Kosdaq Composite and WISE ITech
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.64 times more return on investment than WISE ITech. However, Kosdaq Composite Index is 1.56 times less risky than WISE ITech. It trades about -0.1 of its potential returns per unit of risk. WISE iTech Co is currently generating about -0.14 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. WISE iTech Co
Performance |
| Timeline |
Kosdaq Composite and WISE ITech Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
WISE iTech Co
Pair trading matchups for WISE ITech
Pair Trading with Kosdaq Composite and WISE ITech
The main advantage of trading using opposite Kosdaq Composite and WISE ITech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, WISE ITech 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 WISE ITech will offset losses from the drop in WISE ITech's long position.| Kosdaq Composite vs. Nam Hwa Construction | Kosdaq Composite vs. Dongbang Ship Machinery | Kosdaq Composite vs. SEOJEON ELECTRIC MACHINERY | Kosdaq Composite vs. Heungkuk Metaltech CoLtd |
| WISE ITech vs. InnoTherapy | WISE ITech vs. FOODWELL Co | WISE ITech vs. LG Electronics | WISE ITech vs. Hyundai Green Food |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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