Correlation Between Cube Entertainment and Dgb Financial
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Dgb Financial 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 Dgb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Dgb Financial, you can compare the effects of market volatilities on Cube Entertainment and Dgb Financial 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 Dgb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Dgb Financial.
Diversification Opportunities for Cube Entertainment and Dgb Financial
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cube and Dgb is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Dgb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dgb Financial 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 Dgb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dgb Financial has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Dgb Financial go up and down completely randomly.
Pair Corralation between Cube Entertainment and Dgb Financial
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 3.01 times more return on investment than Dgb Financial. However, Cube Entertainment is 3.01 times more volatile than Dgb Financial. It trades about 0.42 of its potential returns per unit of risk. Dgb Financial is currently generating about 0.26 per unit of risk. If you would invest 1,378,000 in Cube Entertainment on November 28, 2024 and sell it today you would earn a total of 316,000 from holding Cube Entertainment or generate 22.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Cube Entertainment vs. Dgb Financial
Performance |
| Timeline |
| Cube Entertainment |
| Dgb Financial |
Cube Entertainment and Dgb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Dgb Financial
The main advantage of trading using opposite Cube Entertainment and Dgb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Dgb Financial 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 Dgb Financial will offset losses from the drop in Dgb Financial's long position.| Cube Entertainment vs. Kyung In Synthetic Corp | Cube Entertainment vs. BIT Computer Co | Cube Entertainment vs. Sangsin Energy Display | Cube Entertainment vs. Korea Petro Chemical |
| Dgb Financial vs. Hyunwoo Industrial Co | Dgb Financial vs. Kisan Telecom Co | Dgb Financial vs. Polaris Office Corp | Dgb Financial vs. Lotte Data Communication |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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