Correlation Between Kosdaq Composite and Namu Tech
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By analyzing existing cross correlation between Kosdaq Composite Index and Namu Tech CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and Namu Tech 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 Namu Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Namu Tech.
Diversification Opportunities for Kosdaq Composite and Namu Tech
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and Namu is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Namu Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namu Tech 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 Namu Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namu Tech CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Namu Tech go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Namu Tech
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.59 times more return on investment than Namu Tech. However, Kosdaq Composite Index is 1.71 times less risky than Namu Tech. It trades about -0.07 of its potential returns per unit of risk. Namu Tech CoLtd is currently generating about -0.06 per unit of risk. If you would invest 81,212 in Kosdaq Composite Index on September 21, 2024 and sell it today you would lose (12,776) from holding Kosdaq Composite Index or give up 15.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.02% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Namu Tech CoLtd
Performance |
| Timeline |
Kosdaq Composite and Namu Tech Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Namu Tech CoLtd
Pair trading matchups for Namu Tech
Pair Trading with Kosdaq Composite and Namu Tech
The main advantage of trading using opposite Kosdaq Composite and Namu Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Namu Tech 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 Namu Tech will offset losses from the drop in Namu Tech's long position.| Kosdaq Composite vs. EBEST Investment Securities | Kosdaq Composite vs. Golden Bridge Investment | Kosdaq Composite vs. LB Investment | Kosdaq Composite vs. Stic Investments |
| Namu Tech vs. Samick Musical Instruments | Namu Tech vs. Eagle Veterinary Technology | Namu Tech vs. Cheryong Industrial CoLtd | Namu Tech vs. Kyeryong Construction 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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