Correlation Between Kosdaq Composite and Suprema
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kosdaq Composite Index and Suprema, you can compare the effects of market volatilities on Kosdaq Composite and Suprema 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 Suprema. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Suprema.
Diversification Opportunities for Kosdaq Composite and Suprema
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Suprema is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Suprema in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suprema 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 Suprema. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suprema has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Suprema go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Suprema
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Suprema. In addition to that, Kosdaq Composite is 1.36 times more volatile than Suprema. It trades about -0.01 of its total potential returns per unit of risk. Suprema is currently generating about 0.23 per unit of volatility. If you would invest 2,240,000 in Suprema on September 14, 2024 and sell it today you would earn a total of 175,000 from holding Suprema or generate 7.81% 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. Suprema
Performance |
| Timeline |
Kosdaq Composite and Suprema Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Suprema
Pair trading matchups for Suprema
Pair Trading with Kosdaq Composite and Suprema
The main advantage of trading using opposite Kosdaq Composite and Suprema positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Suprema 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 Suprema will offset losses from the drop in Suprema's long position.| Kosdaq Composite vs. Nice Information Telecommunication | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. Korea Information Communications | Kosdaq Composite vs. Mobile Appliance |
| Suprema vs. Cube Entertainment | Suprema vs. Dreamus Company | Suprema vs. LG Energy Solution | Suprema vs. Dongwon System |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |