Correlation Between Kosdaq Composite and KBSTAR HealthCare
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kosdaq Composite Index and KBSTAR HealthCare Fixed, you can compare the effects of market volatilities on Kosdaq Composite and KBSTAR HealthCare 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 KBSTAR HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and KBSTAR HealthCare.
Diversification Opportunities for Kosdaq Composite and KBSTAR HealthCare
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kosdaq and KBSTAR is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and KBSTAR HealthCare Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBSTAR HealthCare Fixed 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 KBSTAR HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBSTAR HealthCare Fixed has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and KBSTAR HealthCare go up and down completely randomly.
Pair Corralation between Kosdaq Composite and KBSTAR HealthCare
Assuming the 90 days trading horizon Kosdaq Composite Index is not expected to generate positive returns. Moreover, Kosdaq Composite is 2.3 times more volatile than KBSTAR HealthCare Fixed. It trades away all of its potential returns to assume current level of volatility. KBSTAR HealthCare Fixed is currently generating about 0.04 per unit of risk. If you would invest 1,057,792 in KBSTAR HealthCare Fixed on September 3, 2024 and sell it today you would earn a total of 136,208 from holding KBSTAR HealthCare Fixed or generate 12.88% 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. KBSTAR HealthCare Fixed
Performance |
| Timeline |
Kosdaq Composite and KBSTAR HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
KBSTAR HealthCare Fixed
Pair trading matchups for KBSTAR HealthCare
Pair Trading with Kosdaq Composite and KBSTAR HealthCare
The main advantage of trading using opposite Kosdaq Composite and KBSTAR HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, KBSTAR HealthCare 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 KBSTAR HealthCare will offset losses from the drop in KBSTAR HealthCare's long position.The idea behind Kosdaq Composite Index and KBSTAR HealthCare Fixed pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| KBSTAR HealthCare vs. KBSTAR 200TR | KBSTAR HealthCare vs. KBSTAR EURO STOXX | KBSTAR HealthCare vs. KBSTAR Global Metaverse | KBSTAR HealthCare vs. KBSTAR Short Term IG |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |