Correlation Between Cube Entertainment and Nature
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Nature 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 Nature into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Nature and Environment, you can compare the effects of market volatilities on Cube Entertainment and Nature 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 Nature. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Nature.
Diversification Opportunities for Cube Entertainment and Nature
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cube and Nature is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Nature and Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nature and Environment 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 Nature. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nature and Environment has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Nature go up and down completely randomly.
Pair Corralation between Cube Entertainment and Nature
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.37 times more return on investment than Nature. However, Cube Entertainment is 1.37 times more volatile than Nature and Environment. It trades about 0.02 of its potential returns per unit of risk. Nature and Environment is currently generating about -0.07 per unit of risk. If you would invest 1,451,000 in Cube Entertainment on August 25, 2024 and sell it today you would earn a total of 39,000 from holding Cube Entertainment or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. Nature and Environment
Performance |
| Timeline |
| Cube Entertainment |
| Nature and Environment |
Cube Entertainment and Nature Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Nature
The main advantage of trading using opposite Cube Entertainment and Nature positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Nature 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 Nature will offset losses from the drop in Nature'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 |
| Nature vs. Cube Entertainment | Nature vs. Derkwoo Electronics Co | Nature vs. MediaZen | Nature vs. Sungwoo Electronics 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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