Correlation Between Kosdaq Composite and Cosmax Nbt
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By analyzing existing cross correlation between Kosdaq Composite Index and Cosmax Nbt, you can compare the effects of market volatilities on Kosdaq Composite and Cosmax Nbt 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 Cosmax Nbt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Cosmax Nbt.
Diversification Opportunities for Kosdaq Composite and Cosmax Nbt
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kosdaq and Cosmax is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Cosmax Nbt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmax Nbt 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 Cosmax Nbt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmax Nbt has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Cosmax Nbt go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Cosmax Nbt
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.34 times more return on investment than Cosmax Nbt. However, Kosdaq Composite Index is 2.97 times less risky than Cosmax Nbt. It trades about -0.19 of its potential returns per unit of risk. Cosmax Nbt is currently generating about -0.13 per unit of risk. If you would invest 74,418 in Kosdaq Composite Index on August 30, 2024 and sell it today you would lose (4,985) from holding Kosdaq Composite Index or give up 6.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Cosmax Nbt
Performance |
| Timeline |
Kosdaq Composite and Cosmax Nbt Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Cosmax Nbt
Pair trading matchups for Cosmax Nbt
Pair Trading with Kosdaq Composite and Cosmax Nbt
The main advantage of trading using opposite Kosdaq Composite and Cosmax Nbt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Cosmax Nbt 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 Cosmax Nbt will offset losses from the drop in Cosmax Nbt's long position.| Kosdaq Composite vs. RFTech Co | Kosdaq Composite vs. Yura Tech Co | Kosdaq Composite vs. Hwangkum Steel Technology | Kosdaq Composite vs. Woori Technology |
| Cosmax Nbt vs. Lotte Data Communication | Cosmax Nbt vs. Chorokbaem Healthcare Co | Cosmax Nbt vs. Daishin Information Communications | Cosmax Nbt vs. Shinsegae Information Communication |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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