Correlation Between Kosdaq Composite and Design
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By analyzing existing cross correlation between Kosdaq Composite Index and Design Co, you can compare the effects of market volatilities on Kosdaq Composite and Design 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 Design. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Design.
Diversification Opportunities for Kosdaq Composite and Design
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kosdaq and Design is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Design Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Design 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 Design. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Design has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Design go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Design
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Design. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 7.52 times less risky than Design. The index trades about -0.13 of its potential returns per unit of risk. The Design Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 65,500 in Design Co on September 2, 2024 and sell it today you would earn a total of 33,400 from holding Design Co or generate 50.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Design Co
Performance |
| Timeline |
Kosdaq Composite and Design Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Design Co
Pair trading matchups for Design
Pair Trading with Kosdaq Composite and Design
The main advantage of trading using opposite Kosdaq Composite and Design positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Design 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 Design will offset losses from the drop in Design'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 |
| Design vs. Daedong Metals Co | Design vs. PJ Metal Co | Design vs. ITM Semiconductor Co | Design vs. Taeyang Metal Industrial |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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