Correlation Between Kosdaq Composite and DAEYANG ELECTRICCoLtd
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By analyzing existing cross correlation between Kosdaq Composite Index and DAEYANG ELECTRICCoLtd, you can compare the effects of market volatilities on Kosdaq Composite and DAEYANG ELECTRICCoLtd 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 DAEYANG ELECTRICCoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and DAEYANG ELECTRICCoLtd.
Diversification Opportunities for Kosdaq Composite and DAEYANG ELECTRICCoLtd
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kosdaq and DAEYANG is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and DAEYANG ELECTRICCoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEYANG ELECTRICCoLtd 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 DAEYANG ELECTRICCoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEYANG ELECTRICCoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and DAEYANG ELECTRICCoLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and DAEYANG ELECTRICCoLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the DAEYANG ELECTRICCoLtd. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.64 times less risky than DAEYANG ELECTRICCoLtd. The index trades about -0.05 of its potential returns per unit of risk. The DAEYANG ELECTRICCoLtd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,187,000 in DAEYANG ELECTRICCoLtd on August 26, 2024 and sell it today you would earn a total of 96,000 from holding DAEYANG ELECTRICCoLtd or generate 8.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. DAEYANG ELECTRICCoLtd
Performance |
| Timeline |
Kosdaq Composite and DAEYANG ELECTRICCoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
DAEYANG ELECTRICCoLtd
Pair trading matchups for DAEYANG ELECTRICCoLtd
Pair Trading with Kosdaq Composite and DAEYANG ELECTRICCoLtd
The main advantage of trading using opposite Kosdaq Composite and DAEYANG ELECTRICCoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, DAEYANG ELECTRICCoLtd 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 DAEYANG ELECTRICCoLtd will offset losses from the drop in DAEYANG ELECTRICCoLtd'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 |
| DAEYANG ELECTRICCoLtd vs. Cots Technology Co | DAEYANG ELECTRICCoLtd vs. Osang Healthcare Co,Ltd | DAEYANG ELECTRICCoLtd vs. LG Household Healthcare | DAEYANG ELECTRICCoLtd vs. LG Household Healthcare |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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