Correlation Between Dongil Steel and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Dongil Steel 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 Dongil Steel and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Steel Co and Cube Entertainment, you can compare the effects of market volatilities on Dongil Steel 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 Dongil Steel with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Steel and Cube Entertainment.
Diversification Opportunities for Dongil Steel and Cube Entertainment
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongil and Cube is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Steel Co and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and Dongil Steel 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 Dongil Steel Co 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 Dongil Steel i.e., Dongil Steel and Cube Entertainment go up and down completely randomly.
Pair Corralation between Dongil Steel and Cube Entertainment
Assuming the 90 days trading horizon Dongil Steel Co is expected to under-perform the Cube Entertainment. In addition to that, Dongil Steel is 1.1 times more volatile than Cube Entertainment. It trades about -0.01 of its total potential returns per unit of risk. Cube Entertainment is currently generating about 0.01 per unit of volatility. If you would invest 2,000,000 in Cube Entertainment on September 1, 2024 and sell it today you would lose (362,000) from holding Cube Entertainment or give up 18.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Steel Co vs. Cube Entertainment
Performance |
| Timeline |
| Dongil Steel |
| Cube Entertainment |
Dongil Steel and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Steel and Cube Entertainment
The main advantage of trading using opposite Dongil Steel and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Steel 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.| Dongil Steel vs. Keum Kang Steel | Dongil Steel vs. Tplex Co | Dongil Steel vs. Gyeongnam Steel Co | Dongil Steel vs. Jeil Steel Mfg |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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