Correlation Between Kosdaq Composite and Ajusteel
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By analyzing existing cross correlation between Kosdaq Composite Index and Ajusteel Co, you can compare the effects of market volatilities on Kosdaq Composite and Ajusteel 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 Ajusteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Ajusteel.
Diversification Opportunities for Kosdaq Composite and Ajusteel
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Ajusteel is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Ajusteel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ajusteel 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 Ajusteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ajusteel has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Ajusteel go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Ajusteel
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.72 times more return on investment than Ajusteel. However, Kosdaq Composite Index is 1.38 times less risky than Ajusteel. It trades about -0.1 of its potential returns per unit of risk. Ajusteel Co is currently generating about -0.1 per unit of risk. If you would invest 84,799 in Kosdaq Composite Index on August 25, 2024 and sell it today you would lose (17,044) from holding Kosdaq Composite Index or give up 20.1% 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. Ajusteel Co
Performance |
| Timeline |
Kosdaq Composite and Ajusteel Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Ajusteel Co
Pair trading matchups for Ajusteel
Pair Trading with Kosdaq Composite and Ajusteel
The main advantage of trading using opposite Kosdaq Composite and Ajusteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Ajusteel 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 Ajusteel will offset losses from the drop in Ajusteel's long position.| Kosdaq Composite vs. Nam Hwa Construction | Kosdaq Composite vs. Dongbang Ship Machinery | Kosdaq Composite vs. SEOJEON ELECTRIC MACHINERY | Kosdaq Composite vs. Heungkuk Metaltech CoLtd |
| Ajusteel vs. DataSolution | Ajusteel vs. Korea Shipbuilding Offshore | Ajusteel vs. Moadata Co | Ajusteel vs. CKH Food Health |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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