Correlation Between Kosdaq Composite and Digital Power
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By analyzing existing cross correlation between Kosdaq Composite Index and Digital Power Communications, you can compare the effects of market volatilities on Kosdaq Composite and Digital 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 Kosdaq Composite with a short position of Digital Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Digital Power.
Diversification Opportunities for Kosdaq Composite and Digital Power
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Digital is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Digital Power Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Power Commun and Kosdaq Composite 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 Kosdaq Composite Index are associated (or correlated) with Digital Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Power Commun has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Digital Power go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Digital Power
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Digital Power. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.36 times less risky than Digital Power. The index trades about -0.24 of its potential returns per unit of risk. The Digital Power Communications is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 799,000 in Digital Power Communications on August 25, 2024 and sell it today you would lose (19,000) from holding Digital Power Communications or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Digital Power Communications
Performance |
| Timeline |
Kosdaq Composite and Digital Power Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Digital Power Communications
Pair trading matchups for Digital Power
Pair Trading with Kosdaq Composite and Digital Power
The main advantage of trading using opposite Kosdaq Composite and Digital Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Digital 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 Digital Power will offset losses from the drop in Digital Power's long position.| Kosdaq Composite vs. Kbi Metal Co | Kosdaq Composite vs. Shinsung Delta Tech | Kosdaq Composite vs. Woori Technology | Kosdaq Composite vs. Dongil Metal Co |
| Digital Power vs. AptaBio Therapeutics | Digital Power vs. Daewoo SBI SPAC | Digital Power vs. Dream Security co | Digital Power vs. Microfriend |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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