Correlation Between Kosdaq Composite and COWINTECH
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By analyzing existing cross correlation between Kosdaq Composite Index and COWINTECH Co, you can compare the effects of market volatilities on Kosdaq Composite and COWINTECH 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 COWINTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and COWINTECH.
Diversification Opportunities for Kosdaq Composite and COWINTECH
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kosdaq and COWINTECH is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and COWINTECH Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COWINTECH 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 COWINTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COWINTECH has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and COWINTECH go up and down completely randomly.
Pair Corralation between Kosdaq Composite and COWINTECH
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the COWINTECH. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 4.63 times less risky than COWINTECH. The index trades about -0.19 of its potential returns per unit of risk. The COWINTECH Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,401,000 in COWINTECH Co on August 29, 2024 and sell it today you would earn a total of 70,000 from holding COWINTECH Co or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. COWINTECH Co
Performance |
| Timeline |
Kosdaq Composite and COWINTECH Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
COWINTECH Co
Pair trading matchups for COWINTECH
Pair Trading with Kosdaq Composite and COWINTECH
The main advantage of trading using opposite Kosdaq Composite and COWINTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, COWINTECH 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 COWINTECH will offset losses from the drop in COWINTECH'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 |
| COWINTECH vs. Shinsegae Food | COWINTECH vs. CJ Seafood Corp | COWINTECH vs. Lotte Non Life Insurance | COWINTECH vs. Seoul Food 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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