Correlation Between Kosdaq Composite and Amogreentech CoLtd
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By analyzing existing cross correlation between Kosdaq Composite Index and Amogreentech CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and Amogreentech 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 Amogreentech CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Amogreentech CoLtd.
Diversification Opportunities for Kosdaq Composite and Amogreentech CoLtd
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Amogreentech is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Amogreentech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amogreentech 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 Amogreentech CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amogreentech CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Amogreentech CoLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Amogreentech CoLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.41 times more return on investment than Amogreentech CoLtd. However, Kosdaq Composite Index is 2.44 times less risky than Amogreentech CoLtd. It trades about -0.19 of its potential returns per unit of risk. Amogreentech CoLtd is currently generating about -0.11 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 | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Amogreentech CoLtd
Performance |
| Timeline |
Kosdaq Composite and Amogreentech CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Amogreentech CoLtd
Pair trading matchups for Amogreentech CoLtd
Pair Trading with Kosdaq Composite and Amogreentech CoLtd
The main advantage of trading using opposite Kosdaq Composite and Amogreentech CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Amogreentech 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 Amogreentech CoLtd will offset losses from the drop in Amogreentech CoLtd's long position.| Kosdaq Composite vs. Korea Air Svc | Kosdaq Composite vs. Mobileleader CoLtd | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. TOPMATERIAL LTD |
| Amogreentech CoLtd vs. Ecopro BM Co | Amogreentech CoLtd vs. Sangsin Energy Display | Amogreentech CoLtd vs. Bosung Power Technology | Amogreentech CoLtd vs. APro 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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