Correlation Between Kosdaq Composite and Daelim Industrial
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By analyzing existing cross correlation between Kosdaq Composite Index and Daelim Industrial Co, you can compare the effects of market volatilities on Kosdaq Composite and Daelim Industrial 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 Daelim Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Daelim Industrial.
Diversification Opportunities for Kosdaq Composite and Daelim Industrial
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kosdaq and Daelim is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Daelim Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daelim Industrial 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 Daelim Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daelim Industrial has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Daelim Industrial go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Daelim Industrial
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.98 times more return on investment than Daelim Industrial. However, Kosdaq Composite Index is 1.02 times less risky than Daelim Industrial. It trades about -0.12 of its potential returns per unit of risk. Daelim Industrial Co is currently generating about -0.16 per unit of risk. If you would invest 76,735 in Kosdaq Composite Index on September 24, 2024 and sell it today you would lose (9,904) from holding Kosdaq Composite Index or give up 12.91% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kosdaq Composite Index vs. Daelim Industrial Co
Performance |
Timeline |
Kosdaq Composite and Daelim Industrial Volatility Contrast
Predicted Return Density |
Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Daelim Industrial Co
Pair trading matchups for Daelim Industrial
Pair Trading with Kosdaq Composite and Daelim Industrial
The main advantage of trading using opposite Kosdaq Composite and Daelim Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Daelim Industrial 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 Daelim Industrial will offset losses from the drop in Daelim Industrial's long position.Kosdaq Composite vs. Dongwoo Farm To | Kosdaq Composite vs. Semyung Electric Machinery | Kosdaq Composite vs. Samick Musical Instruments | Kosdaq Composite vs. Songwon Industrial Co |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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