Correlation Between Kosdaq Composite and Theragen Etex
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By analyzing existing cross correlation between Kosdaq Composite Index and Theragen Etex CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and Theragen Etex 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 Theragen Etex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Theragen Etex.
Diversification Opportunities for Kosdaq Composite and Theragen Etex
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kosdaq and Theragen is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Theragen Etex CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Theragen Etex CoLtd 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 Theragen Etex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Theragen Etex CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Theragen Etex go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Theragen Etex
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 1.32 times less return on investment than Theragen Etex. But when comparing it to its historical volatility, Kosdaq Composite Index is 1.19 times less risky than Theragen Etex. It trades about 0.23 of its potential returns per unit of risk. Theragen Etex CoLtd is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 291,000 in Theragen Etex CoLtd on December 4, 2024 and sell it today you would earn a total of 22,000 from holding Theragen Etex CoLtd or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Theragen Etex CoLtd
Performance |
| Timeline |
Kosdaq Composite and Theragen Etex Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Theragen Etex CoLtd
Pair trading matchups for Theragen Etex
Pair Trading with Kosdaq Composite and Theragen Etex
The main advantage of trading using opposite Kosdaq Composite and Theragen Etex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Theragen Etex 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 Theragen Etex will offset losses from the drop in Theragen Etex's long position.| Kosdaq Composite vs. Dong A Steel Technology | Kosdaq Composite vs. Keum Kang Steel | Kosdaq Composite vs. InnoTherapy | Kosdaq Composite vs. Dongil Steel Co |
| Theragen Etex vs. YeaRimDang Publishing Co | Theragen Etex vs. Korea Information Engineering | Theragen Etex vs. Inzi Display CoLtd | Theragen Etex vs. SCI Information Service |
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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