Correlation Between Kosdaq Composite and Wave Electronics
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By analyzing existing cross correlation between Kosdaq Composite Index and Wave Electronics Co, you can compare the effects of market volatilities on Kosdaq Composite and Wave Electronics 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 Wave Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Wave Electronics.
Diversification Opportunities for Kosdaq Composite and Wave Electronics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Wave is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Wave Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wave Electronics 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 Wave Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wave Electronics has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Wave Electronics go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Wave Electronics
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.63 times more return on investment than Wave Electronics. However, Kosdaq Composite Index is 1.59 times less risky than Wave Electronics. It trades about -0.09 of its potential returns per unit of risk. Wave Electronics Co is currently generating about -0.06 per unit of risk. If you would invest 71,052 in Kosdaq Composite Index on September 13, 2024 and sell it today you would lose (3,460) from holding Kosdaq Composite Index or give up 4.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Wave Electronics Co
Performance |
| Timeline |
Kosdaq Composite and Wave Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Wave Electronics Co
Pair trading matchups for Wave Electronics
Pair Trading with Kosdaq Composite and Wave Electronics
The main advantage of trading using opposite Kosdaq Composite and Wave Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Wave Electronics 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 Wave Electronics will offset losses from the drop in Wave Electronics' long position.| Kosdaq Composite vs. Vissem Electronics Co | Kosdaq Composite vs. SungMoon Electronics Co | Kosdaq Composite vs. Cuckoo Electronics Co | Kosdaq Composite vs. Daeduck Electronics Co |
| Wave Electronics vs. Derkwoo Electronics Co | Wave Electronics vs. Shinil Electronics Co | Wave Electronics vs. Iljin Materials Co | Wave Electronics vs. Ecoplastic |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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