Correlation Between CU Medical and DoubleU Games
Can any of the company-specific risk be diversified away by investing in both CU Medical and DoubleU Games 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 CU Medical and DoubleU Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CU Medical Systems and DoubleU Games Co, you can compare the effects of market volatilities on CU Medical and DoubleU Games 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 CU Medical with a short position of DoubleU Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of CU Medical and DoubleU Games.
Diversification Opportunities for CU Medical and DoubleU Games
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between 115480 and DoubleU is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding CU Medical Systems and DoubleU Games Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleU Games and CU Medical 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 CU Medical Systems are associated (or correlated) with DoubleU Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleU Games has no effect on the direction of CU Medical i.e., CU Medical and DoubleU Games go up and down completely randomly.
Pair Corralation between CU Medical and DoubleU Games
Assuming the 90 days trading horizon CU Medical Systems is expected to generate 0.52 times more return on investment than DoubleU Games. However, CU Medical Systems is 1.91 times less risky than DoubleU Games. It trades about 0.13 of its potential returns per unit of risk. DoubleU Games Co is currently generating about -0.29 per unit of risk. If you would invest 68,600 in CU Medical Systems on October 15, 2024 and sell it today you would earn a total of 1,300 from holding CU Medical Systems or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CU Medical Systems vs. DoubleU Games Co
Performance |
| Timeline |
| CU Medical Systems |
| DoubleU Games |
CU Medical and DoubleU Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CU Medical and DoubleU Games
The main advantage of trading using opposite CU Medical and DoubleU Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CU Medical position performs unexpectedly, DoubleU Games 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 DoubleU Games will offset losses from the drop in DoubleU Games' long position.| CU Medical vs. KPX Green Chemical | CU Medical vs. Dongnam Chemical Co | CU Medical vs. ITM Semiconductor Co | CU Medical vs. JC Chemical Co |
| DoubleU Games vs. CU Medical Systems | DoubleU Games vs. Taegu Broadcasting | DoubleU Games vs. Daelim Trading Co | DoubleU Games vs. DB Financial Investment |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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