Correlation Between Kosdaq Composite and IQuest
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kosdaq Composite Index and IQuest Co, you can compare the effects of market volatilities on Kosdaq Composite and IQuest 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 IQuest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and IQuest.
Diversification Opportunities for Kosdaq Composite and IQuest
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kosdaq and IQuest is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and IQuest Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQuest 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 IQuest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQuest has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and IQuest go up and down completely randomly.
Pair Corralation between Kosdaq Composite and IQuest
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the IQuest. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 2.25 times less risky than IQuest. The index trades about -0.17 of its potential returns per unit of risk. The IQuest Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 223,000 in IQuest Co on August 28, 2024 and sell it today you would earn a total of 21,000 from holding IQuest Co or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. IQuest Co
Performance |
| Timeline |
Kosdaq Composite and IQuest Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
IQuest Co
Pair trading matchups for IQuest
Pair Trading with Kosdaq Composite and IQuest
The main advantage of trading using opposite Kosdaq Composite and IQuest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, IQuest 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 IQuest will offset losses from the drop in IQuest's long position.| Kosdaq Composite vs. Daejung Chemicals Metals | Kosdaq Composite vs. LG Household Healthcare | Kosdaq Composite vs. Cuckoo Homesys Co | Kosdaq Composite vs. Osang Healthcare Co,Ltd |
| IQuest vs. Samsung Electronics Co | IQuest vs. Samsung Electronics Co | IQuest vs. LG Energy Solution | IQuest vs. SK Hynix |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |