Correlation Between Kosdaq Composite and BBC
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By analyzing existing cross correlation between Kosdaq Composite Index and BBC Co, you can compare the effects of market volatilities on Kosdaq Composite and BBC 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 BBC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and BBC.
Diversification Opportunities for Kosdaq Composite and BBC
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kosdaq and BBC is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and BBC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBC Co 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 BBC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBC Co has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and BBC go up and down completely randomly.
Pair Corralation between Kosdaq Composite and BBC
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.99 times more return on investment than BBC. However, Kosdaq Composite Index is 1.01 times less risky than BBC. It trades about 0.31 of its potential returns per unit of risk. BBC Co is currently generating about -0.13 per unit of risk. If you would invest 68,663 in Kosdaq Composite Index on November 1, 2024 and sell it today you would earn a total of 4,211 from holding Kosdaq Composite Index or generate 6.13% 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. BBC Co
Performance |
| Timeline |
Kosdaq Composite and BBC Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
BBC Co
Pair trading matchups for BBC
Pair Trading with Kosdaq Composite and BBC
The main advantage of trading using opposite Kosdaq Composite and BBC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, BBC 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 BBC will offset losses from the drop in BBC's long position.| Kosdaq Composite vs. Digital Power Communications | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. PlayD Co | Kosdaq Composite vs. Nable Communications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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