Correlation Between Dragonfly and Kaonmedia
Can any of the company-specific risk be diversified away by investing in both Dragonfly and Kaonmedia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dragonfly and Kaonmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dragonfly GF Co and Kaonmedia Co, you can compare the effects of market volatilities on Dragonfly and Kaonmedia 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 Dragonfly with a short position of Kaonmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dragonfly and Kaonmedia.
Diversification Opportunities for Dragonfly and Kaonmedia
Very good diversification
The 3 months correlation between Dragonfly and Kaonmedia is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dragonfly GF Co and Kaonmedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaonmedia and Dragonfly 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 Dragonfly GF Co are associated (or correlated) with Kaonmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaonmedia has no effect on the direction of Dragonfly i.e., Dragonfly and Kaonmedia go up and down completely randomly.
Pair Corralation between Dragonfly and Kaonmedia
Assuming the 90 days trading horizon Dragonfly GF Co is expected to under-perform the Kaonmedia. In addition to that, Dragonfly is 2.81 times more volatile than Kaonmedia Co. It trades about -0.06 of its total potential returns per unit of risk. Kaonmedia Co is currently generating about 0.09 per unit of volatility. If you would invest 297,500 in Kaonmedia Co on November 30, 2024 and sell it today you would earn a total of 22,500 from holding Kaonmedia Co or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dragonfly GF Co vs. Kaonmedia Co
Performance |
| Timeline |
| Dragonfly GF |
| Kaonmedia |
Dragonfly and Kaonmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dragonfly and Kaonmedia
The main advantage of trading using opposite Dragonfly and Kaonmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dragonfly position performs unexpectedly, Kaonmedia 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 Kaonmedia will offset losses from the drop in Kaonmedia's long position.| Dragonfly vs. PI Advanced Materials | Dragonfly vs. Ssangyong Materials Corp | Dragonfly vs. RF Materials Co | Dragonfly vs. Mirai Semiconductors Co |
| Kaonmedia vs. Samsung Electronics Co | Kaonmedia vs. Samsung Electronics Co | Kaonmedia vs. SK Hynix | Kaonmedia vs. HMM 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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