Correlation Between Kosdaq Composite and Global Standard
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By analyzing existing cross correlation between Kosdaq Composite Index and Global Standard Technology, you can compare the effects of market volatilities on Kosdaq Composite and Global Standard 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 Global Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Global Standard.
Diversification Opportunities for Kosdaq Composite and Global Standard
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Global is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Global Standard Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Standard Tech 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 Global Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Standard Tech has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Global Standard go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Global Standard
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Global Standard. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 2.69 times less risky than Global Standard. The index trades about -0.04 of its potential returns per unit of risk. The Global Standard Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,376,480 in Global Standard Technology on September 1, 2024 and sell it today you would earn a total of 23,520 from holding Global Standard Technology or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Global Standard Technology
Performance |
| Timeline |
Kosdaq Composite and Global Standard Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Global Standard Technology
Pair trading matchups for Global Standard
Pair Trading with Kosdaq Composite and Global Standard
The main advantage of trading using opposite Kosdaq Composite and Global Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Global Standard 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 Global Standard will offset losses from the drop in Global Standard's long position.| Kosdaq Composite vs. Golden Bridge Investment | Kosdaq Composite vs. Lotte Data Communication | Kosdaq Composite vs. E Investment Development | Kosdaq Composite vs. Stic Investments |
| Global Standard vs. Dongsin Engineering Construction | Global Standard vs. Doosan Fuel Cell | Global Standard vs. Daishin Balance 1 | Global Standard vs. Total Soft Bank |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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