Correlation Between Kosdaq Composite and KBSTAR TDF2050
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By analyzing existing cross correlation between Kosdaq Composite Index and KBSTAR TDF2050 Active, you can compare the effects of market volatilities on Kosdaq Composite and KBSTAR TDF2050 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 TDF2050. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and KBSTAR TDF2050.
Diversification Opportunities for Kosdaq Composite and KBSTAR TDF2050
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kosdaq and KBSTAR is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and KBSTAR TDF2050 Active in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBSTAR TDF2050 Active 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 TDF2050. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBSTAR TDF2050 Active has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and KBSTAR TDF2050 go up and down completely randomly.
Pair Corralation between Kosdaq Composite and KBSTAR TDF2050
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 8.48 times less return on investment than KBSTAR TDF2050. In addition to that, Kosdaq Composite is 2.5 times more volatile than KBSTAR TDF2050 Active. It trades about 0.01 of its total potential returns per unit of risk. KBSTAR TDF2050 Active is currently generating about 0.13 per unit of volatility. If you would invest 932,500 in KBSTAR TDF2050 Active on September 13, 2024 and sell it today you would earn a total of 414,500 from holding KBSTAR TDF2050 Active or generate 44.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. KBSTAR TDF2050 Active
Performance |
| Timeline |
Kosdaq Composite and KBSTAR TDF2050 Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
KBSTAR TDF2050 Active
Pair trading matchups for KBSTAR TDF2050
Pair Trading with Kosdaq Composite and KBSTAR TDF2050
The main advantage of trading using opposite Kosdaq Composite and KBSTAR TDF2050 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, KBSTAR TDF2050 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 TDF2050 will offset losses from the drop in KBSTAR TDF2050's long position.| Kosdaq Composite vs. Vissem Electronics Co | Kosdaq Composite vs. SungMoon Electronics Co | Kosdaq Composite vs. Cuckoo Electronics Co | Kosdaq Composite vs. Daeduck Electronics Co |
| KBSTAR TDF2050 vs. Busan Industrial Co | KBSTAR TDF2050 vs. Busan Ind | KBSTAR TDF2050 vs. Shinhan WTI Futures | KBSTAR TDF2050 vs. UNISEM Co |
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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