Correlation Between Cube Entertainment and Dongil Steel
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Dongil 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 Dongil 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 Dongil Steel Co, you can compare the effects of market volatilities on Cube Entertainment and Dongil 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 Dongil Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Dongil Steel.
Diversification Opportunities for Cube Entertainment and Dongil Steel
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cube and Dongil is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Dongil Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Steel 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 Dongil Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Steel has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Dongil Steel go up and down completely randomly.
Pair Corralation between Cube Entertainment and Dongil Steel
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 0.88 times more return on investment than Dongil Steel. However, Cube Entertainment is 1.14 times less risky than Dongil Steel. It trades about 0.01 of its potential returns per unit of risk. Dongil Steel Co is currently generating about -0.01 per unit of risk. If you would invest 1,805,000 in Cube Entertainment on September 3, 2024 and sell it today you would lose (167,000) from holding Cube Entertainment or give up 9.25% 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. Dongil Steel Co
Performance |
| Timeline |
| Cube Entertainment |
| Dongil Steel |
Cube Entertainment and Dongil Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Dongil Steel
The main advantage of trading using opposite Cube Entertainment and Dongil Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Dongil 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 Dongil Steel will offset losses from the drop in Dongil 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 |
| Dongil Steel vs. Korean Reinsurance Co | Dongil Steel vs. Dongbang Ship Machinery | Dongil Steel vs. Haitai Confectionery Foods | Dongil Steel vs. Seoam Machinery Industry |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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