Correlation Between Kosdaq Composite and ABL Bio
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By analyzing existing cross correlation between Kosdaq Composite Index and ABL Bio, you can compare the effects of market volatilities on Kosdaq Composite and ABL Bio 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 ABL Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and ABL Bio.
Diversification Opportunities for Kosdaq Composite and ABL Bio
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and ABL is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and ABL Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABL Bio 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 ABL Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABL Bio has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and ABL Bio go up and down completely randomly.
Pair Corralation between Kosdaq Composite and ABL Bio
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.33 times more return on investment than ABL Bio. However, Kosdaq Composite Index is 3.03 times less risky than ABL Bio. It trades about -0.25 of its potential returns per unit of risk. ABL Bio is currently generating about -0.28 per unit of risk. If you would invest 74,306 in Kosdaq Composite Index on September 1, 2024 and sell it today you would lose (6,444) from holding Kosdaq Composite Index or give up 8.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. ABL Bio
Performance |
| Timeline |
Kosdaq Composite and ABL Bio Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
ABL Bio
Pair trading matchups for ABL Bio
Pair Trading with Kosdaq Composite and ABL Bio
The main advantage of trading using opposite Kosdaq Composite and ABL Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, ABL Bio 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 ABL Bio will offset losses from the drop in ABL Bio's long position.| Kosdaq Composite vs. Golden Bridge Investment | Kosdaq Composite vs. Lotte Data Communication | Kosdaq Composite vs. E Investment Development | Kosdaq Composite vs. Stic Investments |
| ABL Bio vs. SK Bioscience Co | ABL Bio vs. MedPacto | ABL Bio vs. Prestige Biologics Co | ABL Bio vs. OliX PharmaceuticalsInc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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