Correlation Between Kosdaq Composite and HYBE
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By analyzing existing cross correlation between Kosdaq Composite Index and HYBE Co, you can compare the effects of market volatilities on Kosdaq Composite and HYBE 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 HYBE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and HYBE.
Diversification Opportunities for Kosdaq Composite and HYBE
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kosdaq and HYBE is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and HYBE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBE 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 HYBE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBE has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and HYBE go up and down completely randomly.
Pair Corralation between Kosdaq Composite and HYBE
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the HYBE. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.54 times less risky than HYBE. The index trades about -0.37 of its potential returns per unit of risk. The HYBE Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 19,730,000 in HYBE Co on September 3, 2024 and sell it today you would lose (210,000) from holding HYBE Co or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. HYBE Co
Performance |
| Timeline |
Kosdaq Composite and HYBE Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
HYBE Co
Pair trading matchups for HYBE
Pair Trading with Kosdaq Composite and HYBE
The main advantage of trading using opposite Kosdaq Composite and HYBE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, HYBE 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 HYBE will offset losses from the drop in HYBE's long position.The idea behind Kosdaq Composite Index and HYBE Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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