Correlation Between Cube Entertainment and CU Medical
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and CU Medical 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 CU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and CU Medical Systems, you can compare the effects of market volatilities on Cube Entertainment and CU Medical 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 CU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and CU Medical.
Diversification Opportunities for Cube Entertainment and CU Medical
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cube and 115480 is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and CU Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Medical Systems 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 CU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Medical Systems has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and CU Medical go up and down completely randomly.
Pair Corralation between Cube Entertainment and CU Medical
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.91 times more return on investment than CU Medical. However, Cube Entertainment is 1.91 times more volatile than CU Medical Systems. It trades about 0.08 of its potential returns per unit of risk. CU Medical Systems is currently generating about -0.05 per unit of risk. If you would invest 1,268,000 in Cube Entertainment on October 14, 2024 and sell it today you would earn a total of 177,000 from holding Cube Entertainment or generate 13.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. CU Medical Systems
Performance |
| Timeline |
| Cube Entertainment |
| CU Medical Systems |
Cube Entertainment and CU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and CU Medical
The main advantage of trading using opposite Cube Entertainment and CU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, CU Medical 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 CU Medical will offset losses from the drop in CU Medical'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 |
| CU Medical vs. PJ Metal Co | CU Medical vs. MetaLabs Co | CU Medical vs. Cube Entertainment | CU Medical vs. Formetal 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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