Correlation Between Kosdaq Composite and Ecopro BM
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By analyzing existing cross correlation between Kosdaq Composite Index and Ecopro BM Co, you can compare the effects of market volatilities on Kosdaq Composite and Ecopro BM 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 Ecopro BM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Ecopro BM.
Diversification Opportunities for Kosdaq Composite and Ecopro BM
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and Ecopro is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Ecopro BM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecopro BM 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 Ecopro BM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecopro BM has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Ecopro BM go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Ecopro BM
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 31.67 times less return on investment than Ecopro BM. But when comparing it to its historical volatility, Kosdaq Composite Index is 3.06 times less risky than Ecopro BM. It trades about 0.0 of its potential returns per unit of risk. Ecopro BM Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 10,286,100 in Ecopro BM Co on August 29, 2024 and sell it today you would earn a total of 3,233,900 from holding Ecopro BM Co or generate 31.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Ecopro BM Co
Performance |
| Timeline |
Kosdaq Composite and Ecopro BM Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Ecopro BM Co
Pair trading matchups for Ecopro BM
Pair Trading with Kosdaq Composite and Ecopro BM
The main advantage of trading using opposite Kosdaq Composite and Ecopro BM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Ecopro BM 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 Ecopro BM will offset losses from the drop in Ecopro BM's long position.| Kosdaq Composite vs. Korea Air Svc | Kosdaq Composite vs. Mobileleader CoLtd | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. TOPMATERIAL LTD |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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