Correlation Between Kosdaq Composite and Narae Nanotech
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By analyzing existing cross correlation between Kosdaq Composite Index and Narae Nanotech Corp, you can compare the effects of market volatilities on Kosdaq Composite and Narae Nanotech 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 Narae Nanotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Narae Nanotech.
Diversification Opportunities for Kosdaq Composite and Narae Nanotech
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Narae is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Narae Nanotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Narae Nanotech Corp 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 Narae Nanotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Narae Nanotech Corp has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Narae Nanotech go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Narae Nanotech
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Narae Nanotech. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.54 times less risky than Narae Nanotech. The index trades about -0.09 of its potential returns per unit of risk. The Narae Nanotech Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 283,500 in Narae Nanotech Corp on September 13, 2024 and sell it today you would earn a total of 43,000 from holding Narae Nanotech Corp or generate 15.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Narae Nanotech Corp
Performance |
| Timeline |
Kosdaq Composite and Narae Nanotech Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Narae Nanotech Corp
Pair trading matchups for Narae Nanotech
Pair Trading with Kosdaq Composite and Narae Nanotech
The main advantage of trading using opposite Kosdaq Composite and Narae Nanotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Narae Nanotech 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 Narae Nanotech will offset losses from the drop in Narae Nanotech's long position.| Kosdaq Composite vs. Vissem Electronics Co | Kosdaq Composite vs. SungMoon Electronics Co | Kosdaq Composite vs. Cuckoo Electronics Co | Kosdaq Composite vs. Daeduck Electronics Co |
| Narae Nanotech vs. HyVision System | Narae Nanotech vs. Daebo Magnetic CoLtd | Narae Nanotech vs. Vitzro Tech Co | Narae Nanotech vs. Solution Advanced Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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