Correlation Between Kosdaq Composite and IM CoLtd
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By analyzing existing cross correlation between Kosdaq Composite Index and IM CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and IM CoLtd 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 IM CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and IM CoLtd.
Diversification Opportunities for Kosdaq Composite and IM CoLtd
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and 101390 is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and IM CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IM CoLtd 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 IM CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IM CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and IM CoLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and IM CoLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the IM CoLtd. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 3.82 times less risky than IM CoLtd. The index trades about -0.14 of its potential returns per unit of risk. The IM CoLtd is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 329,000 in IM CoLtd on August 25, 2024 and sell it today you would lose (42,000) from holding IM CoLtd or give up 12.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Kosdaq Composite Index vs. IM CoLtd
Performance |
| Timeline |
Kosdaq Composite and IM CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
IM CoLtd
Pair trading matchups for IM CoLtd
Pair Trading with Kosdaq Composite and IM CoLtd
The main advantage of trading using opposite Kosdaq Composite and IM CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, IM CoLtd 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 IM CoLtd will offset losses from the drop in IM CoLtd's long position.| Kosdaq Composite vs. Kbi Metal Co | Kosdaq Composite vs. Shinsung Delta Tech | Kosdaq Composite vs. Woori Technology | Kosdaq Composite vs. Dongil Metal Co |
| IM CoLtd vs. Daelim Trading Co | IM CoLtd vs. Hanjoo Light Metal | IM CoLtd vs. Golden Bridge Investment | IM CoLtd vs. LB Investment |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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