Correlation Between Eugene Technology and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Eugene Technology 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 Eugene Technology and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eugene Technology CoLtd and Cube Entertainment, you can compare the effects of market volatilities on Eugene Technology 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 Eugene Technology with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Technology and Cube Entertainment.
Diversification Opportunities for Eugene Technology and Cube Entertainment
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eugene and Cube is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Technology CoLtd and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and Eugene Technology 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 Eugene Technology 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 Eugene Technology i.e., Eugene Technology and Cube Entertainment go up and down completely randomly.
Pair Corralation between Eugene Technology and Cube Entertainment
Assuming the 90 days trading horizon Eugene Technology CoLtd is expected to under-perform the Cube Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Eugene Technology CoLtd is 1.11 times less risky than Cube Entertainment. The stock trades about -0.04 of its potential returns per unit of risk. The Cube Entertainment is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,392,000 in Cube Entertainment on September 14, 2024 and sell it today you would earn a total of 251,000 from holding Cube Entertainment or generate 18.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eugene Technology CoLtd vs. Cube Entertainment
Performance |
| Timeline |
| Eugene Technology CoLtd |
| Cube Entertainment |
Eugene Technology and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eugene Technology and Cube Entertainment
The main advantage of trading using opposite Eugene Technology and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene Technology 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.| Eugene Technology vs. Cube Entertainment | Eugene Technology vs. Dreamus Company | Eugene Technology vs. LG Energy Solution | Eugene Technology vs. Dongwon System |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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