Correlation Between Youl Chon and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Youl Chon 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 Youl Chon and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Youl Chon Chemical and Cube Entertainment, you can compare the effects of market volatilities on Youl Chon 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 Youl Chon with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youl Chon and Cube Entertainment.
Diversification Opportunities for Youl Chon and Cube Entertainment
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Youl and Cube is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Youl Chon Chemical and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and Youl Chon 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 Youl Chon Chemical 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 Youl Chon i.e., Youl Chon and Cube Entertainment go up and down completely randomly.
Pair Corralation between Youl Chon and Cube Entertainment
Assuming the 90 days trading horizon Youl Chon Chemical is expected to generate 3.45 times more return on investment than Cube Entertainment. However, Youl Chon is 3.45 times more volatile than Cube Entertainment. It trades about 0.42 of its potential returns per unit of risk. Cube Entertainment is currently generating about -0.29 per unit of risk. If you would invest 2,185,000 in Youl Chon Chemical on November 7, 2024 and sell it today you would earn a total of 875,000 from holding Youl Chon Chemical or generate 40.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youl Chon Chemical vs. Cube Entertainment
Performance |
| Timeline |
| Youl Chon Chemical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Cube Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Youl Chon and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youl Chon and Cube Entertainment
The main advantage of trading using opposite Youl Chon and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youl Chon 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.| Youl Chon vs. PNC Technologies co | Youl Chon vs. KMH Hitech Co | Youl Chon vs. Daehan Synthetic Fiber | Youl Chon vs. SK Chemicals Co |
| Cube Entertainment vs. Pan Entertainment Co | Cube Entertainment vs. Neungyule Education | Cube Entertainment vs. INNOX Advanced Materials | Cube Entertainment vs. Seoul Semiconductor Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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