Correlation Between Kosdaq Composite and GeneBioTech
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By analyzing existing cross correlation between Kosdaq Composite Index and GeneBioTech Co, you can compare the effects of market volatilities on Kosdaq Composite and GeneBioTech 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 GeneBioTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and GeneBioTech.
Diversification Opportunities for Kosdaq Composite and GeneBioTech
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and GeneBioTech is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and GeneBioTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeneBioTech 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 GeneBioTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GeneBioTech has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and GeneBioTech go up and down completely randomly.
Pair Corralation between Kosdaq Composite and GeneBioTech
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.78 times more return on investment than GeneBioTech. However, Kosdaq Composite Index is 1.27 times less risky than GeneBioTech. It trades about 0.01 of its potential returns per unit of risk. GeneBioTech Co is currently generating about -0.01 per unit of risk. If you would invest 67,929 in Kosdaq Composite Index on September 19, 2024 and sell it today you would earn a total of 1,518 from holding Kosdaq Composite Index or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kosdaq Composite Index vs. GeneBioTech Co
Performance |
| Timeline |
Kosdaq Composite and GeneBioTech Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
GeneBioTech Co
Pair trading matchups for GeneBioTech
Pair Trading with Kosdaq Composite and GeneBioTech
The main advantage of trading using opposite Kosdaq Composite and GeneBioTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, GeneBioTech 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 GeneBioTech will offset losses from the drop in GeneBioTech's long position.| Kosdaq Composite vs. Keyang Electric Machinery | Kosdaq Composite vs. Mgame Corp | Kosdaq Composite vs. Dongkuk Structures Construction | Kosdaq Composite vs. Daehan Synthetic Fiber |
| GeneBioTech vs. Haesung Industrial Co | GeneBioTech vs. CU Medical Systems | GeneBioTech vs. Myoung Shin Industrial | GeneBioTech vs. Hansol Homedeco 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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