Correlation Between Kosdaq Composite and Daesung Microbiological
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By analyzing existing cross correlation between Kosdaq Composite Index and Daesung Microbiological Labs, you can compare the effects of market volatilities on Kosdaq Composite and Daesung Microbiological 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 Daesung Microbiological. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Daesung Microbiological.
Diversification Opportunities for Kosdaq Composite and Daesung Microbiological
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kosdaq and Daesung is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Daesung Microbiological Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung Microbiological 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 Daesung Microbiological. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Microbiological has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Daesung Microbiological go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Daesung Microbiological
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Daesung Microbiological. In addition to that, Kosdaq Composite is 1.31 times more volatile than Daesung Microbiological Labs. It trades about -0.03 of its total potential returns per unit of risk. Daesung Microbiological Labs is currently generating about 0.11 per unit of volatility. If you would invest 1,055,000 in Daesung Microbiological Labs on February 5, 2024 and sell it today you would earn a total of 20,000 from holding Daesung Microbiological Labs or generate 1.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kosdaq Composite Index vs. Daesung Microbiological Labs
Performance |
Timeline |
Kosdaq Composite and Daesung Microbiological Volatility Contrast
Predicted Return Density |
Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Daesung Microbiological Labs
Pair trading matchups for Daesung Microbiological
Pair Trading with Kosdaq Composite and Daesung Microbiological
The main advantage of trading using opposite Kosdaq Composite and Daesung Microbiological positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Daesung Microbiological 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 Daesung Microbiological will offset losses from the drop in Daesung Microbiological's long position.Kosdaq Composite vs. IC Technology Co | Kosdaq Composite vs. LG Household Healthcare | Kosdaq Composite vs. Vissem Electronics 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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