Correlation Between Digital Imaging and Koh Young
Can any of the company-specific risk be diversified away by investing in both Digital Imaging and Koh Young 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 Koh Young 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 Koh Young Technology, you can compare the effects of market volatilities on Digital Imaging and Koh Young 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 Koh Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Imaging and Koh Young.
Diversification Opportunities for Digital Imaging and Koh Young
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Digital and Koh is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Digital Imaging Technology and Koh Young Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koh Young 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 Koh Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koh Young Technology has no effect on the direction of Digital Imaging i.e., Digital Imaging and Koh Young go up and down completely randomly.
Pair Corralation between Digital Imaging and Koh Young
Assuming the 90 days trading horizon Digital Imaging Technology is expected to generate 1.91 times more return on investment than Koh Young. However, Digital Imaging is 1.91 times more volatile than Koh Young Technology. It trades about 0.2 of its potential returns per unit of risk. Koh Young Technology is currently generating about 0.03 per unit of risk. If you would invest 1,092,000 in Digital Imaging Technology on September 20, 2024 and sell it today you would earn a total of 211,000 from holding Digital Imaging Technology or generate 19.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Digital Imaging Technology vs. Koh Young Technology
Performance |
| Timeline |
| Digital Imaging Tech |
| Koh Young Technology |
Digital Imaging and Koh Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Imaging and Koh Young
The main advantage of trading using opposite Digital Imaging and Koh Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Imaging position performs unexpectedly, Koh Young 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 Koh Young will offset losses from the drop in Koh Young's long position.| Digital Imaging vs. Nice Information Telecommunication | Digital Imaging vs. Aprogen Healthcare Games | Digital Imaging vs. CKH Food Health | Digital Imaging vs. Insung Information 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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