Correlation Between Kosdaq Composite and TSE Co
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By analyzing existing cross correlation between Kosdaq Composite Index and TSE Co, you can compare the effects of market volatilities on Kosdaq Composite and TSE Co 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 TSE Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and TSE Co.
Diversification Opportunities for Kosdaq Composite and TSE Co
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and TSE is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and TSE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSE Co 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 TSE Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSE Co has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and TSE Co go up and down completely randomly.
Pair Corralation between Kosdaq Composite and TSE Co
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the TSE Co. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 2.99 times less risky than TSE Co. The index trades about -0.03 of its potential returns per unit of risk. The TSE Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,947,534 in TSE Co on September 14, 2024 and sell it today you would lose (1,082,534) from holding TSE Co or give up 21.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Kosdaq Composite Index vs. TSE Co
Performance |
| Timeline |
Kosdaq Composite and TSE Co Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
TSE Co
Pair trading matchups for TSE Co
Pair Trading with Kosdaq Composite and TSE Co
The main advantage of trading using opposite Kosdaq Composite and TSE Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, TSE Co 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 TSE Co will offset losses from the drop in TSE Co's long position.| Kosdaq Composite vs. Nice Information Telecommunication | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. Korea Information Communications | Kosdaq Composite vs. Mobile Appliance |
| TSE Co vs. Hansol Chemical Co | TSE Co vs. Kyung In Synthetic Corp | TSE Co vs. LG Chemicals | TSE Co vs. LG Display 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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