Correlation Between Kosdaq Composite and Dong A
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By analyzing existing cross correlation between Kosdaq Composite Index and Dong A Eltek, you can compare the effects of market volatilities on Kosdaq Composite and Dong A 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 Dong A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Dong A.
Diversification Opportunities for Kosdaq Composite and Dong A
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kosdaq and Dong is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Dong A Eltek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dong A Eltek 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 Dong A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dong A Eltek has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Dong A go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Dong A
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.67 times more return on investment than Dong A. However, Kosdaq Composite Index is 1.49 times less risky than Dong A. It trades about -0.19 of its potential returns per unit of risk. Dong A Eltek is currently generating about -0.15 per unit of risk. If you would invest 74,418 in Kosdaq Composite Index on August 30, 2024 and sell it today you would lose (4,985) from holding Kosdaq Composite Index or give up 6.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Dong A Eltek
Performance |
| Timeline |
Kosdaq Composite and Dong A Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Dong A Eltek
Pair trading matchups for Dong A
Pair Trading with Kosdaq Composite and Dong A
The main advantage of trading using opposite Kosdaq Composite and Dong A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Dong A 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 Dong A will offset losses from the drop in Dong A's long position.| Kosdaq Composite vs. RFTech Co | Kosdaq Composite vs. Yura Tech Co | Kosdaq Composite vs. Hwangkum Steel Technology | Kosdaq Composite vs. Woori Technology |
| Dong A vs. DataSolution | Dong A vs. Lotte Data Communication | Dong A vs. Hankuk Steel Wire | Dong A vs. Shinsegae 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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