Correlation Between Kosdaq Composite and Echomarketing CoLtd
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By analyzing existing cross correlation between Kosdaq Composite Index and Echomarketing CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and Echomarketing 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 Echomarketing CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Echomarketing CoLtd.
Diversification Opportunities for Kosdaq Composite and Echomarketing CoLtd
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and Echomarketing is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Echomarketing CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Echomarketing 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 Echomarketing CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Echomarketing CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Echomarketing CoLtd go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Echomarketing CoLtd
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.58 times more return on investment than Echomarketing CoLtd. However, Kosdaq Composite Index is 1.73 times less risky than Echomarketing CoLtd. It trades about -0.1 of its potential returns per unit of risk. Echomarketing CoLtd is currently generating about -0.07 per unit of risk. If you would invest 84,799 in Kosdaq Composite Index on August 25, 2024 and sell it today you would lose (17,044) from holding Kosdaq Composite Index or give up 20.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Echomarketing CoLtd
Performance |
| Timeline |
Kosdaq Composite and Echomarketing CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Echomarketing CoLtd
Pair trading matchups for Echomarketing CoLtd
Pair Trading with Kosdaq Composite and Echomarketing CoLtd
The main advantage of trading using opposite Kosdaq Composite and Echomarketing CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Echomarketing 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 Echomarketing CoLtd will offset losses from the drop in Echomarketing CoLtd's long position.| Kosdaq Composite vs. Kbi Metal Co | Kosdaq Composite vs. Shinsung Delta Tech | Kosdaq Composite vs. Woori Technology | Kosdaq Composite vs. Dongil Metal Co |
| Echomarketing CoLtd vs. AfreecaTV Co | Echomarketing CoLtd vs. SS TECH | Echomarketing CoLtd vs. Busan Industrial Co | Echomarketing CoLtd vs. Busan Ind |
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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