Correlation Between Kosdaq Composite and MITECH CoLtd
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By analyzing existing cross correlation between Kosdaq Composite Index and MITECH CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and MITECH 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 MITECH CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and MITECH CoLtd.
Diversification Opportunities for Kosdaq Composite and MITECH CoLtd
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kosdaq and MITECH is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and MITECH CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MITECH 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 MITECH CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MITECH CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and MITECH CoLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and MITECH CoLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the MITECH CoLtd. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.49 times less risky than MITECH CoLtd. The index trades about -0.09 of its potential returns per unit of risk. The MITECH CoLtd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 809,000 in MITECH CoLtd on September 24, 2024 and sell it today you would earn a total of 6,000 from holding MITECH CoLtd or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. MITECH CoLtd
Performance |
| Timeline |
Kosdaq Composite and MITECH CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
MITECH CoLtd
Pair trading matchups for MITECH CoLtd
Pair Trading with Kosdaq Composite and MITECH CoLtd
The main advantage of trading using opposite Kosdaq Composite and MITECH CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, MITECH 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 MITECH CoLtd will offset losses from the drop in MITECH CoLtd's long position.| Kosdaq Composite vs. Dongwoo Farm To | Kosdaq Composite vs. Semyung Electric Machinery | Kosdaq Composite vs. Samick Musical Instruments | Kosdaq Composite vs. Songwon Industrial Co |
| MITECH CoLtd vs. Samsung Electronics Co | MITECH CoLtd vs. Samsung Electronics Co | MITECH CoLtd vs. LG Energy Solution | MITECH CoLtd 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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