Correlation Between Kosdaq Composite and DeviceENGCOLtd
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kosdaq Composite Index and DeviceENGCOLtd, you can compare the effects of market volatilities on Kosdaq Composite and DeviceENGCOLtd 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 DeviceENGCOLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and DeviceENGCOLtd.
Diversification Opportunities for Kosdaq Composite and DeviceENGCOLtd
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and DeviceENGCOLtd is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and DeviceENGCOLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DeviceENGCOLtd 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 DeviceENGCOLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DeviceENGCOLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and DeviceENGCOLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and DeviceENGCOLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the DeviceENGCOLtd. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.03 times less risky than DeviceENGCOLtd. The index trades about -0.2 of its potential returns per unit of risk. The DeviceENGCOLtd is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 1,338,000 in DeviceENGCOLtd on September 2, 2024 and sell it today you would lose (85,000) from holding DeviceENGCOLtd or give up 6.35% 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. DeviceENGCOLtd
Performance |
| Timeline |
Kosdaq Composite and DeviceENGCOLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
DeviceENGCOLtd
Pair trading matchups for DeviceENGCOLtd
Pair Trading with Kosdaq Composite and DeviceENGCOLtd
The main advantage of trading using opposite Kosdaq Composite and DeviceENGCOLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, DeviceENGCOLtd 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 DeviceENGCOLtd will offset losses from the drop in DeviceENGCOLtd's long position.| Kosdaq Composite vs. DONGKUK TED METAL | Kosdaq Composite vs. Pungguk Ethanol Industrial | Kosdaq Composite vs. Duksan Hi Metal | Kosdaq Composite vs. Daiyang Metal Co |
| DeviceENGCOLtd vs. SK Hynix | DeviceENGCOLtd vs. LX Semicon Co | DeviceENGCOLtd vs. People Technology | DeviceENGCOLtd vs. SIMMTECH 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |