Correlation Between Kosdaq Composite and Daishin Balance
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By analyzing existing cross correlation between Kosdaq Composite Index and Daishin Balance No, you can compare the effects of market volatilities on Kosdaq Composite and Daishin Balance 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 Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Daishin Balance.
Diversification Opportunities for Kosdaq Composite and Daishin Balance
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kosdaq and Daishin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Daishin Balance No in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance No 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 Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance No has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Daishin Balance go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Daishin Balance
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.62 times more return on investment than Daishin Balance. However, Kosdaq Composite Index is 1.61 times less risky than Daishin Balance. It trades about -0.01 of its potential returns per unit of risk. Daishin Balance No is currently generating about -0.02 per unit of risk. If you would invest 68,965 in Kosdaq Composite Index on September 14, 2024 and sell it today you would lose (630.00) from holding Kosdaq Composite Index or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Daishin Balance No
Performance |
| Timeline |
Kosdaq Composite and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Daishin Balance No
Pair trading matchups for Daishin Balance
Pair Trading with Kosdaq Composite and Daishin Balance
The main advantage of trading using opposite Kosdaq Composite and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.| Kosdaq Composite vs. Nice Information Telecommunication | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. Korea Information Communications | Kosdaq Composite vs. Mobile Appliance |
| Daishin Balance vs. Korean Reinsurance Co | Daishin Balance vs. CU Tech Corp | Daishin Balance vs. Digital Power Communications | Daishin Balance vs. Lotte Non Life Insurance |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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