Correlation Between Kosdaq Composite and DreamCIS
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By analyzing existing cross correlation between Kosdaq Composite Index and DreamCIS, you can compare the effects of market volatilities on Kosdaq Composite and DreamCIS 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 DreamCIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and DreamCIS.
Diversification Opportunities for Kosdaq Composite and DreamCIS
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and DreamCIS is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and DreamCIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DreamCIS 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 DreamCIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DreamCIS has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and DreamCIS go up and down completely randomly.
Pair Corralation between Kosdaq Composite and DreamCIS
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.65 times more return on investment than DreamCIS. However, Kosdaq Composite Index is 1.54 times less risky than DreamCIS. It trades about -0.19 of its potential returns per unit of risk. DreamCIS is currently generating about -0.21 per unit of risk. If you would invest 72,884 in Kosdaq Composite Index on September 12, 2024 and sell it today you would lose (6,725) from holding Kosdaq Composite Index or give up 9.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kosdaq Composite Index vs. DreamCIS
Performance |
| Timeline |
Kosdaq Composite and DreamCIS Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
DreamCIS
Pair trading matchups for DreamCIS
Pair Trading with Kosdaq Composite and DreamCIS
The main advantage of trading using opposite Kosdaq Composite and DreamCIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, DreamCIS 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 DreamCIS will offset losses from the drop in DreamCIS's long position.| Kosdaq Composite vs. Daishin Information Communications | Kosdaq Composite vs. Nh Investment And | Kosdaq Composite vs. Korea Computer | Kosdaq Composite vs. DSC Investment |
| DreamCIS vs. Coloray International Investment | DreamCIS vs. Daol Investment Securities | DreamCIS vs. Daelim Trading Co | DreamCIS vs. Woori Technology Investment |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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