Correlation Between Jb Financial and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Jb 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 Jb 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 Jb Financial and Cube Entertainment, you can compare the effects of market volatilities on Jb 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 Jb Financial with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Cube Entertainment.
Diversification Opportunities for Jb Financial and Cube Entertainment
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 175330 and Cube is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and Jb 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 Jb Financial 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 Jb Financial i.e., Jb Financial and Cube Entertainment go up and down completely randomly.
Pair Corralation between Jb Financial and Cube Entertainment
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.63 times more return on investment than Cube Entertainment. However, Jb Financial is 1.57 times less risky than Cube Entertainment. It trades about 0.13 of its potential returns per unit of risk. Cube Entertainment is currently generating about -0.01 per unit of risk. If you would invest 809,197 in Jb Financial on September 2, 2024 and sell it today you would earn a total of 1,158,803 from holding Jb Financial or generate 143.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Cube Entertainment
Performance |
| Timeline |
| Jb Financial |
| Cube Entertainment |
Jb Financial and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Cube Entertainment
The main advantage of trading using opposite Jb Financial and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb 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.| Jb Financial vs. Samsung Electronics Co | Jb Financial vs. Samsung Electronics Co | Jb Financial vs. KB Financial Group | Jb Financial vs. Shinhan Financial Group |
| Cube Entertainment vs. Lindeman Asia Investment | Cube Entertainment vs. Pureun Mutual Savings | Cube Entertainment vs. Hanjoo Light Metal | Cube Entertainment vs. DSC 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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