Correlation Between Alton Sports and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Alton Sports 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 Alton Sports and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alton Sports CoLtd and Cube Entertainment, you can compare the effects of market volatilities on Alton Sports 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 Alton Sports with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alton Sports and Cube Entertainment.
Diversification Opportunities for Alton Sports and Cube Entertainment
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alton and Cube is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Alton Sports CoLtd and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and Alton Sports 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 Alton Sports 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 Alton Sports i.e., Alton Sports and Cube Entertainment go up and down completely randomly.
Pair Corralation between Alton Sports and Cube Entertainment
Assuming the 90 days trading horizon Alton Sports CoLtd is expected to under-perform the Cube Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Alton Sports CoLtd is 1.35 times less risky than Cube Entertainment. The stock trades about -0.09 of its potential returns per unit of risk. The Cube Entertainment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,880,000 in Cube Entertainment on September 4, 2024 and sell it today you would lose (215,000) from holding Cube Entertainment or give up 11.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alton Sports CoLtd vs. Cube Entertainment
Performance |
| Timeline |
| Alton Sports CoLtd |
| Cube Entertainment |
Alton Sports and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alton Sports and Cube Entertainment
The main advantage of trading using opposite Alton Sports and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alton Sports 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.| Alton Sports vs. Korea Real Estate | Alton Sports vs. Busan Industrial Co | Alton Sports vs. UNISEM Co | Alton Sports vs. RPBio Inc |
| Cube Entertainment vs. SK Chemicals Co | Cube Entertainment vs. Sung Bo Chemicals | Cube Entertainment vs. Daedong Metals Co | Cube Entertainment vs. Kbi Metal 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |