Correlation Between Kaonmedia and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Kaonmedia 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 Kaonmedia and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaonmedia Co and Cube Entertainment, you can compare the effects of market volatilities on Kaonmedia 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 Kaonmedia with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaonmedia and Cube Entertainment.
Diversification Opportunities for Kaonmedia and Cube Entertainment
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kaonmedia and Cube is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kaonmedia Co and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and Kaonmedia 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 Kaonmedia 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 Kaonmedia i.e., Kaonmedia and Cube Entertainment go up and down completely randomly.
Pair Corralation between Kaonmedia and Cube Entertainment
Assuming the 90 days trading horizon Kaonmedia is expected to generate 7.84 times less return on investment than Cube Entertainment. In addition to that, Kaonmedia is 1.01 times more volatile than Cube Entertainment. It trades about 0.02 of its total potential returns per unit of risk. Cube Entertainment is currently generating about 0.14 per unit of volatility. If you would invest 1,490,000 in Cube Entertainment on September 18, 2024 and sell it today you would earn a total of 166,000 from holding Cube Entertainment or generate 11.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaonmedia Co vs. Cube Entertainment
Performance |
| Timeline |
| Kaonmedia |
| Cube Entertainment |
Kaonmedia and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaonmedia and Cube Entertainment
The main advantage of trading using opposite Kaonmedia and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaonmedia 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.| Kaonmedia vs. Cube Entertainment | Kaonmedia vs. Dreamus Company | Kaonmedia vs. LG Energy Solution | Kaonmedia vs. Dongwon System |
| Cube Entertainment vs. LG Household Healthcare | Cube Entertainment vs. Alton Sports CoLtd | Cube Entertainment vs. PlayD Co | Cube Entertainment vs. CKH Food Health |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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