Correlation Between Global Standard and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Global Standard 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 Global Standard and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Standard Technology and Cube Entertainment, you can compare the effects of market volatilities on Global Standard 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 Global Standard with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Standard and Cube Entertainment.
Diversification Opportunities for Global Standard and Cube Entertainment
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Cube is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Global Standard Technology and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and Global Standard 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 Global Standard Technology 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 Global Standard i.e., Global Standard and Cube Entertainment go up and down completely randomly.
Pair Corralation between Global Standard and Cube Entertainment
Assuming the 90 days trading horizon Global Standard Technology is expected to generate 1.58 times more return on investment than Cube Entertainment. However, Global Standard is 1.58 times more volatile than Cube Entertainment. It trades about 0.04 of its potential returns per unit of risk. Cube Entertainment is currently generating about 0.0 per unit of risk. If you would invest 1,212,087 in Global Standard Technology on September 12, 2024 and sell it today you would earn a total of 319,913 from holding Global Standard Technology or generate 26.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Standard Technology vs. Cube Entertainment
Performance |
| Timeline |
| Global Standard Tech |
| Cube Entertainment |
Global Standard and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Standard and Cube Entertainment
The main advantage of trading using opposite Global Standard and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Standard 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.| Global Standard vs. Cube Entertainment | Global Standard vs. Dreamus Company | Global Standard vs. LG Energy Solution | Global Standard vs. Dongwon System |
| Cube Entertainment vs. Mobileleader CoLtd | Cube Entertainment vs. Dongwon Metal Co | Cube Entertainment vs. KT Submarine Telecom | Cube Entertainment vs. Hanjoo Light Metal |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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