Correlation Between Cube Entertainment and JC Chemical
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and JC Chemical 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 JC Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and JC Chemical Co, you can compare the effects of market volatilities on Cube Entertainment and JC Chemical 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 JC Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and JC Chemical.
Diversification Opportunities for Cube Entertainment and JC Chemical
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cube and 137950 is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and JC Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JC Chemical 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 JC Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JC Chemical has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and JC Chemical go up and down completely randomly.
Pair Corralation between Cube Entertainment and JC Chemical
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.15 times more return on investment than JC Chemical. However, Cube Entertainment is 1.15 times more volatile than JC Chemical Co. It trades about 0.02 of its potential returns per unit of risk. JC Chemical Co is currently generating about -0.11 per unit of risk. If you would invest 1,609,000 in Cube Entertainment on September 3, 2024 and sell it today you would earn a total of 29,000 from holding Cube Entertainment or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. JC Chemical Co
Performance |
| Timeline |
| Cube Entertainment |
| JC Chemical |
Cube Entertainment and JC Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and JC Chemical
The main advantage of trading using opposite Cube Entertainment and JC Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, JC Chemical 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 JC Chemical will offset losses from the drop in JC Chemical'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 |
| JC Chemical vs. Busan Industrial Co | JC Chemical vs. UNISEM Co | JC Chemical vs. RPBio Inc | JC Chemical vs. Finebesteel |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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