Correlation Between Kginicis CoLtd and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Kginicis CoLtd 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 Kginicis CoLtd and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kginicis CoLtd and Cube Entertainment, you can compare the effects of market volatilities on Kginicis CoLtd 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 Kginicis CoLtd with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kginicis CoLtd and Cube Entertainment.
Diversification Opportunities for Kginicis CoLtd and Cube Entertainment
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kginicis and Cube is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kginicis CoLtd and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and Kginicis CoLtd 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 Kginicis CoLtd 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 Kginicis CoLtd i.e., Kginicis CoLtd and Cube Entertainment go up and down completely randomly.
Pair Corralation between Kginicis CoLtd and Cube Entertainment
Assuming the 90 days trading horizon Kginicis CoLtd is expected to generate 38.7 times less return on investment than Cube Entertainment. But when comparing it to its historical volatility, Kginicis CoLtd is 1.76 times less risky than Cube Entertainment. It trades about 0.01 of its potential returns per unit of risk. Cube Entertainment is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,268,000 in Cube Entertainment on September 13, 2024 and sell it today you would earn a total of 270,000 from holding Cube Entertainment or generate 21.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Kginicis CoLtd vs. Cube Entertainment
Performance |
| Timeline |
| Kginicis CoLtd |
| Cube Entertainment |
Kginicis CoLtd and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kginicis CoLtd and Cube Entertainment
The main advantage of trading using opposite Kginicis CoLtd and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kginicis CoLtd 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.| Kginicis CoLtd vs. Cube Entertainment | Kginicis CoLtd vs. Dreamus Company | Kginicis CoLtd vs. LG Energy Solution | Kginicis CoLtd vs. Dongwon System |
| Cube Entertainment vs. Daishin Information Communications | Cube Entertainment vs. CG Hi Tech | Cube Entertainment vs. Samyoung Electronics Co | Cube Entertainment vs. Derkwoo Electronics 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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