Correlation Between Husteel and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Husteel and Cube Entertainment 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 Husteel and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Husteel and Cube Entertainment, you can compare the effects of market volatilities on Husteel and Cube Entertainment 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 Husteel with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Husteel and Cube Entertainment.
Diversification Opportunities for Husteel and Cube Entertainment
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Husteel and Cube is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Husteel and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and Husteel 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 Husteel are associated (or correlated) with Cube Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cube Entertainment has no effect on the direction of Husteel i.e., Husteel and Cube Entertainment go up and down completely randomly.
Pair Corralation between Husteel and Cube Entertainment
Assuming the 90 days trading horizon Husteel is expected to generate 4.37 times less return on investment than Cube Entertainment. But when comparing it to its historical volatility, Husteel is 1.68 times less risky than Cube Entertainment. It trades about 0.09 of its potential returns per unit of risk. Cube Entertainment is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,360,000 in Cube Entertainment on August 29, 2024 and sell it today you would earn a total of 220,000 from holding Cube Entertainment or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Husteel vs. Cube Entertainment
Performance |
| Timeline |
| Husteel |
| Cube Entertainment |
Husteel and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Husteel and Cube Entertainment
The main advantage of trading using opposite Husteel and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Husteel position performs unexpectedly, Cube Entertainment 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 Cube Entertainment will offset losses from the drop in Cube Entertainment's long position.| Husteel vs. LG Chemicals | Husteel vs. Lotte Chemical Corp | Husteel vs. Hyundai Steel | Husteel vs. Seah Steel Corp |
| Cube Entertainment vs. Samsung Electronics Co | Cube Entertainment vs. Samsung Electronics Co | Cube Entertainment vs. LG Energy Solution | Cube Entertainment vs. SK Hynix |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |