Correlation Between Kosdaq Composite and ITM Semiconductor
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By analyzing existing cross correlation between Kosdaq Composite Index and ITM Semiconductor Co, you can compare the effects of market volatilities on Kosdaq Composite and ITM Semiconductor 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 ITM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and ITM Semiconductor.
Diversification Opportunities for Kosdaq Composite and ITM Semiconductor
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and ITM is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and ITM Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITM Semiconductor 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 ITM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITM Semiconductor has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and ITM Semiconductor go up and down completely randomly.
Pair Corralation between Kosdaq Composite and ITM Semiconductor
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.6 times more return on investment than ITM Semiconductor. However, Kosdaq Composite Index is 1.65 times less risky than ITM Semiconductor. It trades about -0.3 of its potential returns per unit of risk. ITM Semiconductor Co is currently generating about -0.44 per unit of risk. If you would invest 74,048 in Kosdaq Composite Index on August 27, 2024 and sell it today you would lose (6,347) from holding Kosdaq Composite Index or give up 8.57% 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. ITM Semiconductor Co
Performance |
| Timeline |
Kosdaq Composite and ITM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
ITM Semiconductor Co
Pair trading matchups for ITM Semiconductor
Pair Trading with Kosdaq Composite and ITM Semiconductor
The main advantage of trading using opposite Kosdaq Composite and ITM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, ITM Semiconductor 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 ITM Semiconductor will offset losses from the drop in ITM Semiconductor's long position.| Kosdaq Composite vs. Daejung Chemicals Metals | Kosdaq Composite vs. LG Household Healthcare | Kosdaq Composite vs. Cuckoo Homesys Co | Kosdaq Composite vs. Osang Healthcare Co,Ltd |
| ITM Semiconductor vs. SK Hynix | ITM Semiconductor vs. People Technology | ITM Semiconductor vs. SIMMTECH Co | ITM Semiconductor vs. Haesung DS Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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