Correlation Between Kosdaq Composite and Innodep
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By analyzing existing cross correlation between Kosdaq Composite Index and Innodep, you can compare the effects of market volatilities on Kosdaq Composite and Innodep 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 Innodep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Innodep.
Diversification Opportunities for Kosdaq Composite and Innodep
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and Innodep is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Innodep in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innodep 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 Innodep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innodep has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Innodep go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Innodep
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.48 times more return on investment than Innodep. However, Kosdaq Composite Index is 2.1 times less risky than Innodep. It trades about 0.0 of its potential returns per unit of risk. Innodep is currently generating about -0.04 per unit of risk. If you would invest 79,160 in Kosdaq Composite Index on November 19, 2024 and sell it today you would lose (3,528) from holding Kosdaq Composite Index or give up 4.46% 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. Innodep
Performance |
| Timeline |
Kosdaq Composite and Innodep Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Innodep
Pair trading matchups for Innodep
Pair Trading with Kosdaq Composite and Innodep
The main advantage of trading using opposite Kosdaq Composite and Innodep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Innodep 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 Innodep will offset losses from the drop in Innodep's long position.| Kosdaq Composite vs. Hankukpackage Co | Kosdaq Composite vs. Sempio Foods Co | Kosdaq Composite vs. Daejung Chemicals Metals | Kosdaq Composite vs. Samyang Foods 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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