Correlation Between Kosdaq Composite and KIM KINDEX
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By analyzing existing cross correlation between Kosdaq Composite Index and KIM KINDEX Treasury, you can compare the effects of market volatilities on Kosdaq Composite and KIM KINDEX 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 KIM KINDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and KIM KINDEX.
Diversification Opportunities for Kosdaq Composite and KIM KINDEX
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kosdaq and KIM is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and KIM KINDEX Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM KINDEX Treasury 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 KIM KINDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM KINDEX Treasury has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and KIM KINDEX go up and down completely randomly.
Pair Corralation between Kosdaq Composite and KIM KINDEX
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the KIM KINDEX. In addition to that, Kosdaq Composite is 15.67 times more volatile than KIM KINDEX Treasury. It trades about -0.11 of its total potential returns per unit of risk. KIM KINDEX Treasury is currently generating about 0.14 per unit of volatility. If you would invest 10,232,100 in KIM KINDEX Treasury on September 24, 2024 and sell it today you would earn a total of 97,400 from holding KIM KINDEX Treasury or generate 0.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kosdaq Composite Index vs. KIM KINDEX Treasury
Performance |
Timeline |
Kosdaq Composite and KIM KINDEX Volatility Contrast
Predicted Return Density |
Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
KIM KINDEX Treasury
Pair trading matchups for KIM KINDEX
Pair Trading with Kosdaq Composite and KIM KINDEX
The main advantage of trading using opposite Kosdaq Composite and KIM KINDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, KIM KINDEX 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 KIM KINDEX will offset losses from the drop in KIM KINDEX'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 |
KIM KINDEX vs. 456680 | KIM KINDEX vs. Busan Industrial Co | KIM KINDEX vs. Busan Ind | KIM KINDEX vs. Mirae Asset Daewoo |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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