Correlation Between Kosdaq Composite and Alton Sports
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By analyzing existing cross correlation between Kosdaq Composite Index and Alton Sports CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and Alton Sports 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 Alton Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Alton Sports.
Diversification Opportunities for Kosdaq Composite and Alton Sports
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Alton is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Alton Sports CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alton Sports 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 Alton Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alton Sports CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Alton Sports go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Alton Sports
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 1.3 times more return on investment than Alton Sports. However, Kosdaq Composite is 1.3 times more volatile than Alton Sports CoLtd. It trades about -0.19 of its potential returns per unit of risk. Alton Sports CoLtd is currently generating about -0.42 per unit of risk. If you would invest 74,048 in Kosdaq Composite Index on August 29, 2024 and sell it today you would lose (4,835) from holding Kosdaq Composite Index or give up 6.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Alton Sports CoLtd
Performance |
| Timeline |
Kosdaq Composite and Alton Sports Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Alton Sports CoLtd
Pair trading matchups for Alton Sports
Pair Trading with Kosdaq Composite and Alton Sports
The main advantage of trading using opposite Kosdaq Composite and Alton Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Alton Sports 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 Alton Sports will offset losses from the drop in Alton Sports' long position.| Kosdaq Composite vs. Korea Air Svc | Kosdaq Composite vs. Mobileleader CoLtd | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. TOPMATERIAL LTD |
| Alton Sports vs. Nable Communications | Alton Sports vs. Cuckoo Electronics Co | Alton Sports vs. Daesung Hi Tech Co | Alton Sports vs. Daishin Information Communications |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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