Correlation Between Kosdaq Composite and Puloon Technology
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By analyzing existing cross correlation between Kosdaq Composite Index and Puloon Technology, you can compare the effects of market volatilities on Kosdaq Composite and Puloon Technology 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 Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Puloon Technology.
Diversification Opportunities for Kosdaq Composite and Puloon Technology
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Puloon is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology 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 Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Puloon Technology go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Puloon Technology
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Puloon Technology. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 2.2 times less risky than Puloon Technology. The index trades about -0.04 of its potential returns per unit of risk. The Puloon Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 871,899 in Puloon Technology on September 1, 2024 and sell it today you would lose (197,899) from holding Puloon Technology or give up 22.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Puloon Technology
Performance |
| Timeline |
Kosdaq Composite and Puloon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Puloon Technology
Pair trading matchups for Puloon Technology
Pair Trading with Kosdaq Composite and Puloon Technology
The main advantage of trading using opposite Kosdaq Composite and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Puloon Technology 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 Puloon Technology will offset losses from the drop in Puloon Technology's long position.| Kosdaq Composite vs. Golden Bridge Investment | Kosdaq Composite vs. Lotte Data Communication | Kosdaq Composite vs. E Investment Development | Kosdaq Composite vs. Stic Investments |
| Puloon Technology vs. Dongsin Engineering Construction | Puloon Technology vs. Doosan Fuel Cell | Puloon Technology vs. Daishin Balance 1 | Puloon Technology vs. Total Soft Bank |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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