Correlation Between Kosdaq Composite and DONGKUK TED
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By analyzing existing cross correlation between Kosdaq Composite Index and DONGKUK TED METAL, you can compare the effects of market volatilities on Kosdaq Composite and DONGKUK TED 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 DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and DONGKUK TED.
Diversification Opportunities for Kosdaq Composite and DONGKUK TED
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and DONGKUK is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and DONGKUK TED METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DONGKUK TED METAL 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 DONGKUK TED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DONGKUK TED METAL has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and DONGKUK TED go up and down completely randomly.
Pair Corralation between Kosdaq Composite and DONGKUK TED
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.55 times more return on investment than DONGKUK TED. However, Kosdaq Composite Index is 1.81 times less risky than DONGKUK TED. It trades about 0.0 of its potential returns per unit of risk. DONGKUK TED METAL is currently generating about -0.1 per unit of risk. If you would invest 71,252 in Kosdaq Composite Index on August 29, 2024 and sell it today you would lose (2,049) from holding Kosdaq Composite Index or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 73.5% |
| Values | Daily Returns |
Kosdaq Composite Index vs. DONGKUK TED METAL
Performance |
| Timeline |
Kosdaq Composite and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
DONGKUK TED METAL
Pair trading matchups for DONGKUK TED
Pair Trading with Kosdaq Composite and DONGKUK TED
The main advantage of trading using opposite Kosdaq Composite and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, DONGKUK TED 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 DONGKUK TED will offset losses from the drop in DONGKUK TED's long position.| Kosdaq Composite vs. Korea Air Svc | Kosdaq Composite vs. Mobileleader CoLtd | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. TOPMATERIAL LTD |
| DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. LG Energy Solution | DONGKUK TED vs. SK Hynix |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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