Correlation Between KL Technology and Kosdaq Composite
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By analyzing existing cross correlation between KL Technology and Kosdaq Composite Index, you can compare the effects of market volatilities on KL Technology and Kosdaq Composite 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 KL Technology with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of KL Technology and Kosdaq Composite.
Diversification Opportunities for KL Technology and Kosdaq Composite
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KLTE and Kosdaq is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding KL Technology and Kosdaq Composite Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kosdaq Composite Index and KL Technology 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 KL Technology are associated (or correlated) with Kosdaq Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kosdaq Composite Index has no effect on the direction of KL Technology i.e., KL Technology and Kosdaq Composite go up and down completely randomly.
Pair Corralation between KL Technology and Kosdaq Composite
Assuming the 90 days trading horizon KL Technology is expected to generate 0.68 times more return on investment than Kosdaq Composite. However, KL Technology is 1.48 times less risky than Kosdaq Composite. It trades about 0.04 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about -0.17 per unit of risk. If you would invest 6,477 in KL Technology on February 1, 2024 and sell it today you would earn a total of 39.00 from holding KL Technology or generate 0.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
KL Technology vs. Kosdaq Composite Index
Performance |
Timeline |
KL Technology and Kosdaq Composite Volatility Contrast
Predicted Return Density |
Returns |
KL Technology
Pair trading matchups for KL Technology
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with KL Technology and Kosdaq Composite
The main advantage of trading using opposite KL Technology and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KL Technology position performs unexpectedly, Kosdaq Composite 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 Kosdaq Composite will offset losses from the drop in Kosdaq Composite's long position.KL Technology vs. Public Bank Bhd | KL Technology vs. Hong Leong Bank | KL Technology vs. Sports Toto Berhad | KL Technology vs. Apollo Food Holdings |
Kosdaq Composite vs. Digital Power Communications | Kosdaq Composite vs. Sejong Telecom | Kosdaq Composite vs. Cots Technology Co | Kosdaq Composite vs. Seoul Electronics Telecom |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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