Correlation Between Kosdaq Composite and INNOX Advanced
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By analyzing existing cross correlation between Kosdaq Composite Index and INNOX Advanced Materials, you can compare the effects of market volatilities on Kosdaq Composite and INNOX Advanced 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 INNOX Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and INNOX Advanced.
Diversification Opportunities for Kosdaq Composite and INNOX Advanced
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and INNOX is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and INNOX Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INNOX Advanced Materials 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 INNOX Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INNOX Advanced Materials has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and INNOX Advanced go up and down completely randomly.
Pair Corralation between Kosdaq Composite and INNOX Advanced
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.65 times more return on investment than INNOX Advanced. However, Kosdaq Composite Index is 1.54 times less risky than INNOX Advanced. It trades about -0.1 of its potential returns per unit of risk. INNOX Advanced Materials is currently generating about -0.1 per unit of risk. If you would invest 84,799 in Kosdaq Composite Index on August 25, 2024 and sell it today you would lose (17,044) from holding Kosdaq Composite Index or give up 20.1% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kosdaq Composite Index vs. INNOX Advanced Materials
Performance |
Timeline |
Kosdaq Composite and INNOX Advanced Volatility Contrast
Predicted Return Density |
Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
INNOX Advanced Materials
Pair trading matchups for INNOX Advanced
Pair Trading with Kosdaq Composite and INNOX Advanced
The main advantage of trading using opposite Kosdaq Composite and INNOX Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, INNOX Advanced 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 INNOX Advanced will offset losses from the drop in INNOX Advanced's long position.Kosdaq Composite vs. Kbi Metal Co | Kosdaq Composite vs. Shinsung Delta Tech | Kosdaq Composite vs. Woori Technology | Kosdaq Composite vs. Dongil Metal Co |
INNOX Advanced vs. SK Hynix | INNOX Advanced vs. People Technology | INNOX Advanced vs. SIMMTECH Co | INNOX Advanced vs. Haesung DS Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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