Correlation Between Cube Entertainment and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and KIWI Media 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 KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and KIWI Media Group, you can compare the effects of market volatilities on Cube Entertainment and KIWI Media 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 KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and KIWI Media.
Diversification Opportunities for Cube Entertainment and KIWI Media
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cube and KIWI is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group 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 KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and KIWI Media go up and down completely randomly.
Pair Corralation between Cube Entertainment and KIWI Media
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 0.63 times more return on investment than KIWI Media. However, Cube Entertainment is 1.58 times less risky than KIWI Media. It trades about 0.0 of its potential returns per unit of risk. KIWI Media Group is currently generating about 0.0 per unit of risk. If you would invest 2,090,000 in Cube Entertainment on August 25, 2024 and sell it today you would lose (600,000) from holding Cube Entertainment or give up 28.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. KIWI Media Group
Performance |
| Timeline |
| Cube Entertainment |
| KIWI Media Group |
Cube Entertainment and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and KIWI Media
The main advantage of trading using opposite Cube Entertainment and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media'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 |
| KIWI Media vs. Samsung Electronics Co | KIWI Media vs. Samsung Electronics Co | KIWI Media vs. LG Energy Solution | KIWI Media vs. SK Hynix |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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