Correlation Between Kosdaq Composite and Swiss Leader
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By analyzing existing cross correlation between Kosdaq Composite Index and Swiss Leader Price, you can compare the effects of market volatilities on Kosdaq Composite and Swiss Leader 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 Swiss Leader. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Swiss Leader.
Diversification Opportunities for Kosdaq Composite and Swiss Leader
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kosdaq and Swiss is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Swiss Leader Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Leader Price 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 Swiss Leader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Leader Price has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Swiss Leader go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Swiss Leader
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Swiss Leader. In addition to that, Kosdaq Composite is 1.71 times more volatile than Swiss Leader Price. It trades about -0.17 of its total potential returns per unit of risk. Swiss Leader Price is currently generating about -0.2 per unit of volatility. If you would invest 189,969 in Swiss Leader Price on February 1, 2024 and sell it today you would lose (6,043) from holding Swiss Leader Price or give up 3.18% 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. Swiss Leader Price
Performance |
Timeline |
Kosdaq Composite and Swiss Leader Volatility Contrast
Predicted Return Density |
Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Swiss Leader Price
Pair trading matchups for Swiss Leader
Pair Trading with Kosdaq Composite and Swiss Leader
The main advantage of trading using opposite Kosdaq Composite and Swiss Leader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Swiss Leader 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 Swiss Leader will offset losses from the drop in Swiss Leader'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 |
Swiss Leader vs. St Galler Kantonalbank | Swiss Leader vs. Basellandschaftliche Kantonalbank | Swiss Leader vs. Cicor Technologies | Swiss Leader vs. Zuger Kantonalbank |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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