Correlation Between Cube Entertainment and Bosung Power
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Bosung Power 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 Cube Entertainment and Bosung Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Bosung Power Technology, you can compare the effects of market volatilities on Cube Entertainment and Bosung Power 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 Cube Entertainment with a short position of Bosung Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Bosung Power.
Diversification Opportunities for Cube Entertainment and Bosung Power
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cube and Bosung is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Bosung Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosung Power Technology and Cube Entertainment 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 Cube Entertainment are associated (or correlated) with Bosung Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosung Power Technology has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Bosung Power go up and down completely randomly.
Pair Corralation between Cube Entertainment and Bosung Power
Assuming the 90 days trading horizon Cube Entertainment is expected to under-perform the Bosung Power. In addition to that, Cube Entertainment is 1.1 times more volatile than Bosung Power Technology. It trades about 0.0 of its total potential returns per unit of risk. Bosung Power Technology is currently generating about 0.0 per unit of volatility. If you would invest 393,500 in Bosung Power Technology on November 7, 2024 and sell it today you would lose (97,000) from holding Bosung Power Technology or give up 24.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. Bosung Power Technology
Performance |
| Timeline |
| Cube Entertainment |
| Bosung Power Technology |
Cube Entertainment and Bosung Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Bosung Power
The main advantage of trading using opposite Cube Entertainment and Bosung Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Bosung Power 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 Bosung Power will offset losses from the drop in Bosung Power's long position.| Cube Entertainment vs. Samsung Electronics Co | Cube Entertainment vs. Samsung Electronics Co | Cube Entertainment vs. LG Energy Solution | Cube Entertainment vs. SK Hynix |
| Bosung Power vs. ENF Technology Co | Bosung Power vs. Cuckoo Homesys Co | Bosung Power vs. Hanjin Transportation Co | Bosung Power vs. Polaris Office Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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