Correlation Between Digital Multimedia and Kyung In
Can any of the company-specific risk be diversified away by investing in both Digital Multimedia and Kyung In 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 Multimedia and Kyung In into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Multimedia Technology and Kyung In Synthetic Corp, you can compare the effects of market volatilities on Digital Multimedia and Kyung In 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 Multimedia with a short position of Kyung In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Multimedia and Kyung In.
Diversification Opportunities for Digital Multimedia and Kyung In
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Digital and Kyung is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Digital Multimedia Technology and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic and Digital Multimedia 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 Multimedia Technology are associated (or correlated) with Kyung In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of Digital Multimedia i.e., Digital Multimedia and Kyung In go up and down completely randomly.
Pair Corralation between Digital Multimedia and Kyung In
Assuming the 90 days trading horizon Digital Multimedia Technology is expected to under-perform the Kyung In. In addition to that, Digital Multimedia is 1.96 times more volatile than Kyung In Synthetic Corp. It trades about -0.13 of its total potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about -0.12 per unit of volatility. If you would invest 298,000 in Kyung In Synthetic Corp on August 29, 2024 and sell it today you would lose (13,000) from holding Kyung In Synthetic Corp or give up 4.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Multimedia Technology vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Digital Multimedia |
| Kyung In Synthetic |
Digital Multimedia and Kyung In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Multimedia and Kyung In
The main advantage of trading using opposite Digital Multimedia and Kyung In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Multimedia position performs unexpectedly, Kyung In 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 Kyung In will offset losses from the drop in Kyung In's long position.| Digital Multimedia vs. AptaBio Therapeutics | Digital Multimedia vs. Daewoo SBI SPAC | Digital Multimedia vs. Dream Security co | Digital Multimedia vs. Microfriend |
| Kyung In vs. Korean Reinsurance Co | Kyung In vs. Lotte Non Life Insurance | Kyung In vs. Hyosung Advanced Materials | Kyung In vs. DB Financial Investment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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