Correlation Between Cube Entertainment and Kaonmedia
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Kaonmedia 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 Kaonmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Kaonmedia Co, you can compare the effects of market volatilities on Cube Entertainment and Kaonmedia 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 Kaonmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Kaonmedia.
Diversification Opportunities for Cube Entertainment and Kaonmedia
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cube and Kaonmedia is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Kaonmedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaonmedia 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 Kaonmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaonmedia has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Kaonmedia go up and down completely randomly.
Pair Corralation between Cube Entertainment and Kaonmedia
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 0.81 times more return on investment than Kaonmedia. However, Cube Entertainment is 1.24 times less risky than Kaonmedia. It trades about 0.38 of its potential returns per unit of risk. Kaonmedia Co is currently generating about -0.04 per unit of risk. If you would invest 1,304,000 in Cube Entertainment on September 1, 2024 and sell it today you would earn a total of 334,000 from holding Cube Entertainment or generate 25.61% 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. Kaonmedia Co
Performance |
| Timeline |
| Cube Entertainment |
| Kaonmedia |
Cube Entertainment and Kaonmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Kaonmedia
The main advantage of trading using opposite Cube Entertainment and Kaonmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Kaonmedia 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 Kaonmedia will offset losses from the drop in Kaonmedia'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 |
| Kaonmedia vs. Dongsin Engineering Construction | Kaonmedia vs. Doosan Fuel Cell | Kaonmedia vs. Daishin Balance 1 | Kaonmedia vs. Total Soft Bank |
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.
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