Correlation Between Kosdaq Composite and Lix Solution
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By analyzing existing cross correlation between Kosdaq Composite Index and Lix Solution CoLtd, you can compare the effects of market volatilities on Kosdaq Composite and Lix Solution 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 Lix Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Lix Solution.
Diversification Opportunities for Kosdaq Composite and Lix Solution
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Lix is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Lix Solution CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lix Solution CoLtd 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 Lix Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lix Solution CoLtd has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Lix Solution go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Lix Solution
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 0.33 times more return on investment than Lix Solution. However, Kosdaq Composite Index is 2.99 times less risky than Lix Solution. It trades about -0.1 of its potential returns per unit of risk. Lix Solution CoLtd is currently generating about -0.12 per unit of risk. If you would invest 89,159 in Kosdaq Composite Index on February 2, 2024 and sell it today you would lose (2,266) from holding Kosdaq Composite Index or give up 2.54% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kosdaq Composite Index vs. Lix Solution CoLtd
Performance |
Timeline |
Kosdaq Composite and Lix Solution Volatility Contrast
Predicted Return Density |
Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Lix Solution CoLtd
Pair trading matchups for Lix Solution
Pair Trading with Kosdaq Composite and Lix Solution
The main advantage of trading using opposite Kosdaq Composite and Lix Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Lix Solution 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 Lix Solution will offset losses from the drop in Lix Solution's long position.Kosdaq Composite vs. Digital Power Communications | Kosdaq Composite vs. Sejong Telecom | Kosdaq Composite vs. Cots Technology Co | Kosdaq Composite vs. Seoul Electronics Telecom |
Lix Solution vs. KB Financial Group | Lix Solution vs. Hana Financial | Lix Solution vs. Woori Financial Group | Lix Solution vs. Samsung Electronics 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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