Correlation Between Kosdaq Composite and E Investment
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By analyzing existing cross correlation between Kosdaq Composite Index and E Investment Development, you can compare the effects of market volatilities on Kosdaq Composite and E Investment 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 E Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and E Investment.
Diversification Opportunities for Kosdaq Composite and E Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kosdaq and 093230 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and E Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Investment Development 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 E Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Investment Development has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and E Investment go up and down completely randomly.
Pair Corralation between Kosdaq Composite and E Investment
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.76 times more return on investment than E Investment. However, Kosdaq Composite Index is 1.31 times less risky than E Investment. It trades about -0.03 of its potential returns per unit of risk. E Investment Development is currently generating about -0.04 per unit of risk. If you would invest 84,228 in Kosdaq Composite Index on August 29, 2024 and sell it today you would lose (15,015) from holding Kosdaq Composite Index or give up 17.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Kosdaq Composite Index vs. E Investment Development
Performance |
| Timeline |
Kosdaq Composite and E Investment Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
E Investment Development
Pair trading matchups for E Investment
Pair Trading with Kosdaq Composite and E Investment
The main advantage of trading using opposite Kosdaq Composite and E Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, E Investment 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 E Investment will offset losses from the drop in E Investment's long position.| Kosdaq Composite vs. Shinil Electronics Co | Kosdaq Composite vs. Sungdo Engineering Construction | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. ENERGYMACHINERY KOREA CoLtd |
| E Investment vs. Korea Real Estate | E Investment vs. Korea Ratings Co | E Investment vs. IQuest Co | E Investment vs. Wonbang Tech 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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