Correlation Between Atec and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Atec 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 Atec and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atec Co and Cube Entertainment, you can compare the effects of market volatilities on Atec 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 Atec with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atec and Cube Entertainment.
Diversification Opportunities for Atec and Cube Entertainment
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atec and Cube is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Atec Co and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and Atec 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 Atec 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 Atec i.e., Atec and Cube Entertainment go up and down completely randomly.
Pair Corralation between Atec and Cube Entertainment
Assuming the 90 days trading horizon Atec Co is expected to generate 1.83 times more return on investment than Cube Entertainment. However, Atec is 1.83 times more volatile than Cube Entertainment. It trades about 0.1 of its potential returns per unit of risk. Cube Entertainment is currently generating about 0.01 per unit of risk. If you would invest 1,287,830 in Atec Co on September 14, 2024 and sell it today you would earn a total of 2,107,170 from holding Atec Co or generate 163.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atec Co vs. Cube Entertainment
Performance |
| Timeline |
| Atec |
| Cube Entertainment |
Atec and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atec and Cube Entertainment
The main advantage of trading using opposite Atec and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atec 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.| Atec vs. Digital Power Communications | Atec vs. Lotte Data Communication | Atec vs. Seoul Electronics Telecom | Atec vs. Korea Information Communications |
| Cube Entertainment vs. PlayD Co | Cube Entertainment vs. Neungyule Education | Cube Entertainment vs. Solution Advanced Technology | Cube Entertainment vs. Busan Industrial 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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