Correlation Between ABOV Semiconductor and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both ABOV Semiconductor 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 ABOV Semiconductor and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABOV Semiconductor Co and Cube Entertainment, you can compare the effects of market volatilities on ABOV Semiconductor 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 ABOV Semiconductor with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABOV Semiconductor and Cube Entertainment.
Diversification Opportunities for ABOV Semiconductor and Cube Entertainment
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABOV and Cube is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ABOV Semiconductor Co and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and ABOV Semiconductor 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 ABOV Semiconductor 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 ABOV Semiconductor i.e., ABOV Semiconductor and Cube Entertainment go up and down completely randomly.
Pair Corralation between ABOV Semiconductor and Cube Entertainment
Assuming the 90 days trading horizon ABOV Semiconductor Co is expected to under-perform the Cube Entertainment. In addition to that, ABOV Semiconductor is 1.35 times more volatile than Cube Entertainment. It trades about -0.07 of its total potential returns per unit of risk. Cube Entertainment is currently generating about 0.02 per unit of volatility. If you would invest 1,501,000 in Cube Entertainment on August 28, 2024 and sell it today you would earn a total of 8,000 from holding Cube Entertainment or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABOV Semiconductor Co vs. Cube Entertainment
Performance |
| Timeline |
| ABOV Semiconductor |
| Cube Entertainment |
ABOV Semiconductor and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABOV Semiconductor and Cube Entertainment
The main advantage of trading using opposite ABOV Semiconductor and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABOV Semiconductor 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.| ABOV Semiconductor vs. Korea Real Estate | ABOV Semiconductor vs. Korea Ratings Co | ABOV Semiconductor vs. IQuest Co | ABOV Semiconductor vs. Wonbang Tech Co |
| Cube Entertainment vs. ABOV Semiconductor Co | Cube Entertainment vs. Korea Information Communications | Cube Entertainment vs. Sung Bo Chemicals | Cube Entertainment vs. Lotte Data Communication |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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