Correlation Between Kosdaq Composite and KBSTAR EURO
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By analyzing existing cross correlation between Kosdaq Composite Index and KBSTAR EURO STOXX, you can compare the effects of market volatilities on Kosdaq Composite and KBSTAR EURO 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 KBSTAR EURO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and KBSTAR EURO.
Diversification Opportunities for Kosdaq Composite and KBSTAR EURO
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and KBSTAR is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and KBSTAR EURO STOXX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBSTAR EURO STOXX 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 KBSTAR EURO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBSTAR EURO STOXX has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and KBSTAR EURO go up and down completely randomly.
Pair Corralation between Kosdaq Composite and KBSTAR EURO
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the KBSTAR EURO. In addition to that, Kosdaq Composite is 2.61 times more volatile than KBSTAR EURO STOXX. It trades about -0.19 of its total potential returns per unit of risk. KBSTAR EURO STOXX is currently generating about 0.16 per unit of volatility. If you would invest 1,335,500 in KBSTAR EURO STOXX on September 12, 2024 and sell it today you would earn a total of 38,500 from holding KBSTAR EURO STOXX or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. KBSTAR EURO STOXX
Performance |
| Timeline |
Kosdaq Composite and KBSTAR EURO Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
KBSTAR EURO STOXX
Pair trading matchups for KBSTAR EURO
Pair Trading with Kosdaq Composite and KBSTAR EURO
The main advantage of trading using opposite Kosdaq Composite and KBSTAR EURO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, KBSTAR EURO 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 KBSTAR EURO will offset losses from the drop in KBSTAR EURO's long position.| Kosdaq Composite vs. Daishin Information Communications | Kosdaq Composite vs. Nh Investment And | Kosdaq Composite vs. Korea Computer | Kosdaq Composite vs. DSC Investment |
| KBSTAR EURO vs. KBSTAR 200TR | KBSTAR EURO vs. KBSTAR HealthCare Fixed | KBSTAR EURO vs. KBSTAR Global Metaverse | KBSTAR EURO vs. KBSTAR Short Term IG |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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