Correlation Between Kosdaq Composite and KM
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kosdaq Composite Index and KM Corporation, you can compare the effects of market volatilities on Kosdaq Composite and KM 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 KM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and KM.
Diversification Opportunities for Kosdaq Composite and KM
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and KM is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and KM Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KM Corporation 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 KM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KM Corporation has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and KM go up and down completely randomly.
Pair Corralation between Kosdaq Composite and KM
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 1.11 times more return on investment than KM. However, Kosdaq Composite is 1.11 times more volatile than KM Corporation. It trades about 0.08 of its potential returns per unit of risk. KM Corporation is currently generating about -0.07 per unit of risk. If you would invest 72,829 in Kosdaq Composite Index on December 1, 2024 and sell it today you would earn a total of 1,567 from holding Kosdaq Composite Index or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. KM Corp.
Performance |
| Timeline |
Kosdaq Composite and KM Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
KM Corporation
Pair trading matchups for KM
Pair Trading with Kosdaq Composite and KM
The main advantage of trading using opposite Kosdaq Composite and KM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, KM 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 KM will offset losses from the drop in KM's long position.| Kosdaq Composite vs. Lotte Data Communication | Kosdaq Composite vs. Spolytech Co | Kosdaq Composite vs. Nable Communications | Kosdaq Composite vs. Daishin Information Communications |
| KM vs. Mobile Appliance | KM vs. Lotte Non Life Insurance | KM vs. Samsung Life Insurance | KM vs. Ssangyong Information Communication |
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.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |