Correlation Between Kosdaq Composite and Kakao Games
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kosdaq Composite Index and Kakao Games Corp, you can compare the effects of market volatilities on Kosdaq Composite and Kakao Games 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 Kakao Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Kakao Games.
Diversification Opportunities for Kosdaq Composite and Kakao Games
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Kakao is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Kakao Games Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kakao Games Corp 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 Kakao Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kakao Games Corp has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Kakao Games go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Kakao Games
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Kakao Games. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.45 times less risky than Kakao Games. The index trades about -0.1 of its potential returns per unit of risk. The Kakao Games Corp is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,080,000 in Kakao Games Corp on September 3, 2024 and sell it today you would lose (265,000) from holding Kakao Games Corp or give up 12.74% 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. Kakao Games Corp
Performance |
| Timeline |
Kosdaq Composite and Kakao Games Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Kakao Games Corp
Pair trading matchups for Kakao Games
Pair Trading with Kosdaq Composite and Kakao Games
The main advantage of trading using opposite Kosdaq Composite and Kakao Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Kakao Games 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 Kakao Games will offset losses from the drop in Kakao Games' long position.The idea behind Kosdaq Composite Index and Kakao Games Corp 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.
| Kakao Games vs. Kukdong Oil Chemicals | Kakao Games vs. Display Tech Co | Kakao Games vs. Hyundai Industrial Co | Kakao Games vs. Korea Alcohol 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |