Correlation Between STCube and Soulbrain Holdings
Can any of the company-specific risk be diversified away by investing in both STCube and Soulbrain Holdings 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 STCube and Soulbrain Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STCube Inc and Soulbrain Holdings Co, you can compare the effects of market volatilities on STCube and Soulbrain Holdings 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 STCube with a short position of Soulbrain Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of STCube and Soulbrain Holdings.
Diversification Opportunities for STCube and Soulbrain Holdings
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between STCube and Soulbrain is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding STCube Inc and Soulbrain Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soulbrain Holdings and STCube 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 STCube Inc are associated (or correlated) with Soulbrain Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soulbrain Holdings has no effect on the direction of STCube i.e., STCube and Soulbrain Holdings go up and down completely randomly.
Pair Corralation between STCube and Soulbrain Holdings
Assuming the 90 days trading horizon STCube Inc is expected to generate 1.81 times more return on investment than Soulbrain Holdings. However, STCube is 1.81 times more volatile than Soulbrain Holdings Co. It trades about -0.08 of its potential returns per unit of risk. Soulbrain Holdings Co is currently generating about -0.44 per unit of risk. If you would invest 621,000 in STCube Inc on September 1, 2024 and sell it today you would lose (79,000) from holding STCube Inc or give up 12.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STCube Inc vs. Soulbrain Holdings Co
Performance |
| Timeline |
| STCube Inc |
| Soulbrain Holdings |
STCube and Soulbrain Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STCube and Soulbrain Holdings
The main advantage of trading using opposite STCube and Soulbrain Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STCube position performs unexpectedly, Soulbrain Holdings 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 Soulbrain Holdings will offset losses from the drop in Soulbrain Holdings' long position.| STCube vs. Shinhan Inverse Copper | STCube vs. Korea Investment Holdings | STCube vs. DONGKUK TED METAL | STCube vs. Heungkuk Metaltech CoLtd |
| Soulbrain Holdings vs. SFA Engineering | Soulbrain Holdings vs. Seoul Semiconductor Co | Soulbrain Holdings vs. Wonik Ips 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |