Correlation Between Cube Entertainment and HB Technology
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and HB Technology 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 HB Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and HB Technology TD, you can compare the effects of market volatilities on Cube Entertainment and HB Technology 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 HB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and HB Technology.
Diversification Opportunities for Cube Entertainment and HB Technology
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cube and 078150 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and HB Technology TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HB Technology TD 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 HB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HB Technology TD has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and HB Technology go up and down completely randomly.
Pair Corralation between Cube Entertainment and HB Technology
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 0.97 times more return on investment than HB Technology. However, Cube Entertainment is 1.03 times less risky than HB Technology. It trades about 0.24 of its potential returns per unit of risk. HB Technology TD is currently generating about -0.16 per unit of risk. If you would invest 1,360,000 in Cube Entertainment on August 29, 2024 and sell it today you would earn a total of 220,000 from holding Cube Entertainment or generate 16.18% 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. HB Technology TD
Performance |
| Timeline |
| Cube Entertainment |
| HB Technology TD |
Cube Entertainment and HB Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and HB Technology
The main advantage of trading using opposite Cube Entertainment and HB Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, HB Technology 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 HB Technology will offset losses from the drop in HB Technology'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 |
| HB Technology vs. Cube Entertainment | HB Technology vs. T3 Entertainment Co | HB Technology vs. Nable Communications | HB Technology vs. YG Entertainment |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |