Correlation Between Kosdaq Composite and ADTechnology CoLtd
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By analyzing existing cross correlation between Kosdaq Composite Index and ADTechnology CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and ADTechnology 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 ADTechnology CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and ADTechnology CoLtd.
Diversification Opportunities for Kosdaq Composite and ADTechnology CoLtd
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and ADTechnology is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and ADTechnology CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADTechnology 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 ADTechnology CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADTechnology CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and ADTechnology CoLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and ADTechnology CoLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the ADTechnology CoLtd. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 2.9 times less risky than ADTechnology CoLtd. The index trades about 0.0 of its potential returns per unit of risk. The ADTechnology CoLtd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,846,000 in ADTechnology CoLtd on November 9, 2024 and sell it today you would earn a total of 74,000 from holding ADTechnology CoLtd or generate 4.01% 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. ADTechnology CoLtd
Performance |
| Timeline |
Kosdaq Composite and ADTechnology CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
ADTechnology CoLtd
Pair trading matchups for ADTechnology CoLtd
Pair Trading with Kosdaq Composite and ADTechnology CoLtd
The main advantage of trading using opposite Kosdaq Composite and ADTechnology CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, ADTechnology 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 ADTechnology CoLtd will offset losses from the drop in ADTechnology CoLtd's long position.| Kosdaq Composite vs. BGF Retail Co | Kosdaq Composite vs. Kumho Petro Chemical | Kosdaq Composite vs. Hannong Chemicals | Kosdaq Composite vs. Daejung Chemicals Metals |
| ADTechnology CoLtd vs. Tway Air Co | ADTechnology CoLtd vs. Sk Biopharmaceuticals Co | ADTechnology CoLtd vs. Jeju Air Co | ADTechnology CoLtd vs. CJ Seafood Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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