Correlation Between Digital Power and Kosdaq Composite
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By analyzing existing cross correlation between Digital Power Communications and Kosdaq Composite Index, you can compare the effects of market volatilities on Digital Power 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 Digital Power with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Power and Kosdaq Composite.
Diversification Opportunities for Digital Power and Kosdaq Composite
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Digital and Kosdaq is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Digital Power Communications 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 Digital Power 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 Digital Power Communications 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 Digital Power i.e., Digital Power and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Digital Power and Kosdaq Composite
Assuming the 90 days trading horizon Digital Power Communications is expected to under-perform the Kosdaq Composite. In addition to that, Digital Power is 1.03 times more volatile than Kosdaq Composite Index. It trades about -0.3 of its total potential returns per unit of risk. Kosdaq Composite Index is currently generating about 0.31 per unit of volatility. If you would invest 68,663 in Kosdaq Composite Index on November 1, 2024 and sell it today you would earn a total of 4,211 from holding Kosdaq Composite Index or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Power Communications vs. Kosdaq Composite Index
Performance |
| Timeline |
Digital Power and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Digital Power Communications
Pair trading matchups for Digital Power
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Digital Power and Kosdaq Composite
The main advantage of trading using opposite Digital Power and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Power 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.| Digital Power vs. FNSTech Co | Digital Power vs. V One Tech Co | Digital Power vs. Hyundai Industrial Co | Digital Power vs. Hyunwoo Industrial Co |
| Kosdaq Composite vs. Digital Power Communications | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. PlayD Co | Kosdaq Composite vs. Nable Communications |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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