Correlation Between DC Media and Koh Young
Can any of the company-specific risk be diversified away by investing in both DC Media 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 DC Media and Koh Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DC Media CoLtd and Koh Young Technology, you can compare the effects of market volatilities on DC Media 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 DC Media with a short position of Koh Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of DC Media and Koh Young.
Diversification Opportunities for DC Media and Koh Young
Good diversification
The 3 months correlation between 263720 and Koh is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding DC Media CoLtd 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 DC Media 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 DC Media CoLtd 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 DC Media i.e., DC Media and Koh Young go up and down completely randomly.
Pair Corralation between DC Media and Koh Young
Assuming the 90 days trading horizon DC Media CoLtd is expected to generate 1.37 times more return on investment than Koh Young. However, DC Media is 1.37 times more volatile than Koh Young Technology. It trades about 0.13 of its potential returns per unit of risk. Koh Young Technology is currently generating about -0.55 per unit of risk. If you would invest 1,790,000 in DC Media CoLtd on September 4, 2024 and sell it today you would earn a total of 151,000 from holding DC Media CoLtd or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DC Media CoLtd vs. Koh Young Technology
Performance |
| Timeline |
| DC Media CoLtd |
| Koh Young Technology |
DC Media and Koh Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DC Media and Koh Young
The main advantage of trading using opposite DC Media and Koh Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DC Media 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.| DC Media vs. Daedong Metals Co | DC Media vs. Shinhan Inverse Silver | DC Media vs. Duksan Hi Metal | DC Media vs. Pureun Mutual Savings |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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