Correlation Between Kosdaq Composite and Robotis CoLtd
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By analyzing existing cross correlation between Kosdaq Composite Index and Robotis CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and Robotis 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 Robotis CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Robotis CoLtd.
Diversification Opportunities for Kosdaq Composite and Robotis CoLtd
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kosdaq and Robotis is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Robotis CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robotis 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 Robotis CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robotis CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Robotis CoLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Robotis CoLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Robotis CoLtd. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 2.84 times less risky than Robotis CoLtd. The index trades about -0.19 of its potential returns per unit of risk. The Robotis CoLtd is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,799,000 in Robotis CoLtd on August 29, 2024 and sell it today you would earn a total of 296,000 from holding Robotis CoLtd or generate 16.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Robotis CoLtd
Performance |
| Timeline |
Kosdaq Composite and Robotis CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Robotis CoLtd
Pair trading matchups for Robotis CoLtd
Pair Trading with Kosdaq Composite and Robotis CoLtd
The main advantage of trading using opposite Kosdaq Composite and Robotis CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Robotis 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 Robotis CoLtd will offset losses from the drop in Robotis CoLtd's long position.| Kosdaq Composite vs. Shinil Electronics Co | Kosdaq Composite vs. Sungdo Engineering Construction | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. ENERGYMACHINERY KOREA CoLtd |
| Robotis CoLtd vs. Daejoo Electronic Materials | Robotis CoLtd vs. Parksystems Corp | Robotis CoLtd vs. BH Co | Robotis CoLtd vs. Partron 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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