Correlation Between Cube Entertainment and Jeil Steel
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Jeil Steel 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 Jeil Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Jeil Steel Mfg, you can compare the effects of market volatilities on Cube Entertainment and Jeil Steel 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 Jeil Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Jeil Steel.
Diversification Opportunities for Cube Entertainment and Jeil Steel
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cube and Jeil is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Jeil Steel Mfg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeil Steel Mfg 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 Jeil Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeil Steel Mfg has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Jeil Steel go up and down completely randomly.
Pair Corralation between Cube Entertainment and Jeil Steel
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 0.71 times more return on investment than Jeil Steel. However, Cube Entertainment is 1.41 times less risky than Jeil Steel. It trades about 0.06 of its potential returns per unit of risk. Jeil Steel Mfg is currently generating about -0.02 per unit of risk. If you would invest 1,409,000 in Cube Entertainment on September 3, 2024 and sell it today you would earn a total of 229,000 from holding Cube Entertainment or generate 16.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. Jeil Steel Mfg
Performance |
| Timeline |
| Cube Entertainment |
| Jeil Steel Mfg |
Cube Entertainment and Jeil Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Jeil Steel
The main advantage of trading using opposite Cube Entertainment and Jeil Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Jeil Steel 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 Jeil Steel will offset losses from the drop in Jeil Steel's long position.| Cube Entertainment vs. Daejoo Electronic Materials | Cube Entertainment vs. Ssangyong Materials Corp | Cube Entertainment vs. Union Materials Corp | Cube Entertainment vs. Barunson Entertainment Arts |
| Jeil Steel vs. Keum Kang Steel | Jeil Steel vs. Tplex Co | Jeil Steel vs. PJ Metal Co | Jeil Steel vs. Gyeongnam Steel 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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