Correlation Between Digital Multimedia and Kosdaq Composite
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By analyzing existing cross correlation between Digital Multimedia Technology and Kosdaq Composite Index, you can compare the effects of market volatilities on Digital Multimedia 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 Multimedia with a short position of Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Multimedia and Kosdaq Composite.
Diversification Opportunities for Digital Multimedia and Kosdaq Composite
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Digital and Kosdaq is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Digital Multimedia Technology 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 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 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 Multimedia i.e., Digital Multimedia and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Digital Multimedia and Kosdaq Composite
Assuming the 90 days trading horizon Digital Multimedia Technology is expected to generate 5.5 times more return on investment than Kosdaq Composite. However, Digital Multimedia is 5.5 times more volatile than Kosdaq Composite Index. It trades about 0.23 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about 0.42 per unit of risk. If you would invest 152,700 in Digital Multimedia Technology on October 28, 2024 and sell it today you would earn a total of 41,600 from holding Digital Multimedia Technology or generate 27.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Multimedia Technology vs. Kosdaq Composite Index
Performance |
| Timeline |
Digital Multimedia and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Digital Multimedia Technology
Pair trading matchups for Digital Multimedia
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Digital Multimedia and Kosdaq Composite
The main advantage of trading using opposite Digital Multimedia and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Multimedia 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 Multimedia vs. KB Financial Group | Digital Multimedia vs. Shinhan Financial Group | Digital Multimedia vs. Hana Financial | Digital Multimedia vs. Woori Financial Group |
| Kosdaq Composite vs. Seoyon Topmetal Co | Kosdaq Composite vs. Shin Steel Co | Kosdaq Composite vs. Daiyang Metal Co | Kosdaq Composite vs. Wonil Special Steel |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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