Correlation Between Kosdaq Composite and KBSTAR Short
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By analyzing existing cross correlation between Kosdaq Composite Index and KBSTAR Short Term IG, you can compare the effects of market volatilities on Kosdaq Composite and KBSTAR Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and KBSTAR Short.
Diversification Opportunities for Kosdaq Composite and KBSTAR Short
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kosdaq and KBSTAR is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and KBSTAR Short Term IG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBSTAR Short Term 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBSTAR Short Term has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and KBSTAR Short go up and down completely randomly.
Pair Corralation between Kosdaq Composite and KBSTAR Short
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the KBSTAR Short. In addition to that, Kosdaq Composite is 3.14 times more volatile than KBSTAR Short Term IG. It trades about -0.04 of its total potential returns per unit of risk. KBSTAR Short Term IG is currently generating about 0.09 per unit of volatility. If you would invest 1,000,500 in KBSTAR Short Term IG on August 31, 2024 and sell it today you would earn a total of 170,000 from holding KBSTAR Short Term IG or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. KBSTAR Short Term IG
Performance |
| Timeline |
Kosdaq Composite and KBSTAR Short Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
KBSTAR Short Term IG
Pair trading matchups for KBSTAR Short
Pair Trading with Kosdaq Composite and KBSTAR Short
The main advantage of trading using opposite Kosdaq Composite and KBSTAR Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, KBSTAR Short 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 Short will offset losses from the drop in KBSTAR Short's long position.| Kosdaq Composite vs. LG Chemicals | Kosdaq Composite vs. Sempio Foods Co | Kosdaq Composite vs. SK Chemicals Co | Kosdaq Composite vs. Korea Shipbuilding Offshore |
| KBSTAR Short vs. Busan Industrial Co | KBSTAR Short vs. Busan Ind | KBSTAR Short vs. Mirae Asset Daewoo | KBSTAR Short vs. Shinhan WTI Futures |
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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