Correlation Between Digital Imaging and Bosung Power
Can any of the company-specific risk be diversified away by investing in both Digital Imaging and Bosung Power 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 Digital Imaging and Bosung Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Imaging Technology and Bosung Power Technology, you can compare the effects of market volatilities on Digital Imaging and Bosung Power 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 Imaging with a short position of Bosung Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Imaging and Bosung Power.
Diversification Opportunities for Digital Imaging and Bosung Power
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Digital and Bosung is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Digital Imaging Technology and Bosung Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosung Power Technology and Digital Imaging 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 Imaging Technology are associated (or correlated) with Bosung Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosung Power Technology has no effect on the direction of Digital Imaging i.e., Digital Imaging and Bosung Power go up and down completely randomly.
Pair Corralation between Digital Imaging and Bosung Power
Assuming the 90 days trading horizon Digital Imaging Technology is expected to generate 2.26 times more return on investment than Bosung Power. However, Digital Imaging is 2.26 times more volatile than Bosung Power Technology. It trades about 0.42 of its potential returns per unit of risk. Bosung Power Technology is currently generating about 0.48 per unit of risk. If you would invest 1,254,000 in Digital Imaging Technology on October 30, 2024 and sell it today you would earn a total of 568,000 from holding Digital Imaging Technology or generate 45.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Imaging Technology vs. Bosung Power Technology
Performance |
| Timeline |
| Digital Imaging Tech |
| Bosung Power Technology |
Digital Imaging and Bosung Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Imaging and Bosung Power
The main advantage of trading using opposite Digital Imaging and Bosung Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Imaging position performs unexpectedly, Bosung Power 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 Bosung Power will offset losses from the drop in Bosung Power's long position.| Digital Imaging vs. SK Hynix | Digital Imaging vs. LX Semicon Co | Digital Imaging vs. Tokai Carbon Korea | Digital Imaging vs. People Technology |
| Bosung Power vs. TJ media Co | Bosung Power vs. SKONEC Entertainment Co | Bosung Power vs. Samlip General Foods | Bosung Power vs. MEDIANA CoLtd |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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