Correlation Between Kosdaq Composite and GiantStep
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By analyzing existing cross correlation between Kosdaq Composite Index and GiantStep Co, you can compare the effects of market volatilities on Kosdaq Composite and GiantStep 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 GiantStep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and GiantStep.
Diversification Opportunities for Kosdaq Composite and GiantStep
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and GiantStep is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and GiantStep Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GiantStep 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 GiantStep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GiantStep has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and GiantStep go up and down completely randomly.
Pair Corralation between Kosdaq Composite and GiantStep
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.39 times more return on investment than GiantStep. However, Kosdaq Composite Index is 2.57 times less risky than GiantStep. It trades about 0.01 of its potential returns per unit of risk. GiantStep Co is currently generating about -0.04 per unit of risk. If you would invest 69,468 in Kosdaq Composite Index on September 14, 2024 and sell it today you would lose (1,133) from holding Kosdaq Composite Index or give up 1.63% 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. GiantStep Co
Performance |
| Timeline |
Kosdaq Composite and GiantStep Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
GiantStep Co
Pair trading matchups for GiantStep
Pair Trading with Kosdaq Composite and GiantStep
The main advantage of trading using opposite Kosdaq Composite and GiantStep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, GiantStep 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 GiantStep will offset losses from the drop in GiantStep's long position.| Kosdaq Composite vs. Nice Information Telecommunication | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. Korea Information Communications | Kosdaq Composite vs. Mobile Appliance |
| GiantStep vs. HYBE Co | GiantStep vs. NH SPAC 8 | GiantStep vs. Wysiwyg Studios Co | GiantStep vs. RaemongRaein 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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