Correlation Between Kosdaq Composite and RF Materials
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By analyzing existing cross correlation between Kosdaq Composite Index and RF Materials Co, you can compare the effects of market volatilities on Kosdaq Composite and RF Materials 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 RF Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and RF Materials.
Diversification Opportunities for Kosdaq Composite and RF Materials
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and 327260 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and RF Materials Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RF Materials 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 RF Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RF Materials has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and RF Materials go up and down completely randomly.
Pair Corralation between Kosdaq Composite and RF Materials
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.34 times more return on investment than RF Materials. However, Kosdaq Composite Index is 2.92 times less risky than RF Materials. It trades about -0.19 of its potential returns per unit of risk. RF Materials Co is currently generating about -0.2 per unit of risk. If you would invest 74,048 in Kosdaq Composite Index on August 29, 2024 and sell it today you would lose (4,835) from holding Kosdaq Composite Index or give up 6.53% 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. RF Materials Co
Performance |
| Timeline |
Kosdaq Composite and RF Materials Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
RF Materials Co
Pair trading matchups for RF Materials
Pair Trading with Kosdaq Composite and RF Materials
The main advantage of trading using opposite Kosdaq Composite and RF Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, RF Materials 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 RF Materials will offset losses from the drop in RF Materials' long position.| Kosdaq Composite vs. Korea Air Svc | Kosdaq Composite vs. Mobileleader CoLtd | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. TOPMATERIAL LTD |
| RF Materials vs. SK Hynix | RF Materials vs. LX Semicon Co | RF Materials vs. Tokai Carbon Korea | RF Materials vs. People Technology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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