Correlation Between Kosdaq Composite and DC Media
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By analyzing existing cross correlation between Kosdaq Composite Index and DC Media Co, you can compare the effects of market volatilities on Kosdaq Composite and DC Media 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 DC Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and DC Media.
Diversification Opportunities for Kosdaq Composite and DC Media
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kosdaq and 263720 is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and DC Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DC Media 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 DC Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DC Media has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and DC Media go up and down completely randomly.
Pair Corralation between Kosdaq Composite and DC Media
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the DC Media. But the index apears to be less risky and, when comparing its historical volatility, Kosdaq Composite Index is 1.93 times less risky than DC Media. The index trades about -0.21 of its potential returns per unit of risk. The DC Media Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,760,000 in DC Media Co on September 3, 2024 and sell it today you would earn a total of 239,000 from holding DC Media Co or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. DC Media Co
Performance |
| Timeline |
Kosdaq Composite and DC Media Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
DC Media Co
Pair trading matchups for DC Media
Pair Trading with Kosdaq Composite and DC Media
The main advantage of trading using opposite Kosdaq Composite and DC Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, DC Media 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 DC Media will offset losses from the drop in DC Media's long position.The idea behind Kosdaq Composite Index and DC Media Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| DC Media vs. DC Media CoLtd | DC Media vs. Busan Industrial Co | DC Media vs. UNISEM Co | DC Media vs. RPBio Inc |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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