Correlation Between Kosdaq Composite and Daesung Hi
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By analyzing existing cross correlation between Kosdaq Composite Index and Daesung Hi Tech Co, you can compare the effects of market volatilities on Kosdaq Composite and Daesung Hi 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 Daesung Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Daesung Hi.
Diversification Opportunities for Kosdaq Composite and Daesung Hi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Daesung is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Daesung Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung Hi Tech 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 Daesung Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Hi Tech has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Daesung Hi go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Daesung Hi
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Daesung Hi. In addition to that, Kosdaq Composite is 1.03 times more volatile than Daesung Hi Tech Co. It trades about -0.25 of its total potential returns per unit of risk. Daesung Hi Tech Co is currently generating about -0.26 per unit of volatility. If you would invest 403,000 in Daesung Hi Tech Co on September 1, 2024 and sell it today you would lose (34,500) from holding Daesung Hi Tech Co or give up 8.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Daesung Hi Tech Co
Performance |
| Timeline |
Kosdaq Composite and Daesung Hi Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Daesung Hi Tech Co
Pair trading matchups for Daesung Hi
Pair Trading with Kosdaq Composite and Daesung Hi
The main advantage of trading using opposite Kosdaq Composite and Daesung Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Daesung Hi 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 Daesung Hi will offset losses from the drop in Daesung Hi'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 |
| Daesung Hi vs. Samsung Electronics Co | Daesung Hi vs. Samsung Electronics Co | Daesung Hi vs. LG Energy Solution | Daesung Hi vs. SK Hynix |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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