Correlation Between Kosdaq Composite and N Citron
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By analyzing existing cross correlation between Kosdaq Composite Index and N Citron, you can compare the effects of market volatilities on Kosdaq Composite and N Citron 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 N Citron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and N Citron.
Diversification Opportunities for Kosdaq Composite and N Citron
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and 101400 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and N Citron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Citron 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 N Citron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Citron has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and N Citron go up and down completely randomly.
Pair Corralation between Kosdaq Composite and N Citron
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the N Citron. In addition to that, Kosdaq Composite is 1.01 times more volatile than N Citron. It trades about -0.25 of its total potential returns per unit of risk. N Citron is currently generating about -0.13 per unit of volatility. If you would invest 41,900 in N Citron on September 1, 2024 and sell it today you would lose (1,900) from holding N Citron or give up 4.53% 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. N Citron
Performance |
| Timeline |
Kosdaq Composite and N Citron Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
N Citron
Pair trading matchups for N Citron
Pair Trading with Kosdaq Composite and N Citron
The main advantage of trading using opposite Kosdaq Composite and N Citron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, N Citron 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 N Citron will offset losses from the drop in N Citron'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 |
| N Citron vs. Tuksu Engineering ConstructionLtd | N Citron vs. Dongwoo Farm To | N Citron vs. Korea Shipbuilding Offshore | N Citron vs. Seohee Construction 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 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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