Correlation Between KB Financial and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both KB Financial 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 KB Financial and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KB Financial Group and Cube Entertainment, you can compare the effects of market volatilities on KB Financial 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 KB Financial with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Cube Entertainment.
Diversification Opportunities for KB Financial and Cube Entertainment
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between 105560 and Cube is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and KB Financial 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 KB Financial Group 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 KB Financial i.e., KB Financial and Cube Entertainment go up and down completely randomly.
Pair Corralation between KB Financial and Cube Entertainment
Assuming the 90 days trading horizon KB Financial is expected to generate 106.69 times less return on investment than Cube Entertainment. But when comparing it to its historical volatility, KB Financial Group is 1.6 times less risky than Cube Entertainment. It trades about 0.0 of its potential returns per unit of risk. Cube Entertainment is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,360,000 in Cube Entertainment on August 29, 2024 and sell it today you would earn a total of 220,000 from holding Cube Entertainment or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KB Financial Group vs. Cube Entertainment
Performance |
| Timeline |
| KB Financial Group |
| Cube Entertainment |
KB Financial and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Cube Entertainment
The main advantage of trading using opposite KB Financial and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial 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.| KB Financial vs. Cube Entertainment | KB Financial vs. Dreamus Company | KB Financial vs. LG Energy Solution | KB Financial vs. Dongwon System |
| Cube Entertainment vs. ASTORY CoLtd | Cube Entertainment vs. PlayD Co | Cube Entertainment vs. Neungyule Education |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |