Correlation Between Cube Entertainment and Hyundai Industrial
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Hyundai Industrial 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 Hyundai Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Hyundai Industrial Co, you can compare the effects of market volatilities on Cube Entertainment and Hyundai Industrial 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 Hyundai Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Hyundai Industrial.
Diversification Opportunities for Cube Entertainment and Hyundai Industrial
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cube and Hyundai is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Hyundai Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Industrial 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 Hyundai Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Industrial has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Hyundai Industrial go up and down completely randomly.
Pair Corralation between Cube Entertainment and Hyundai Industrial
Assuming the 90 days trading horizon Cube Entertainment is expected to under-perform the Hyundai Industrial. In addition to that, Cube Entertainment is 1.31 times more volatile than Hyundai Industrial Co. It trades about -0.38 of its total potential returns per unit of risk. Hyundai Industrial Co is currently generating about 0.17 per unit of volatility. If you would invest 491,500 in Hyundai Industrial Co on October 29, 2024 and sell it today you would earn a total of 17,500 from holding Hyundai Industrial Co or generate 3.56% 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. Hyundai Industrial Co
Performance |
| Timeline |
| Cube Entertainment |
| Hyundai Industrial |
Cube Entertainment and Hyundai Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Hyundai Industrial
The main advantage of trading using opposite Cube Entertainment and Hyundai Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Hyundai Industrial 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 Hyundai Industrial will offset losses from the drop in Hyundai Industrial'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 |
| Hyundai Industrial vs. DONGKUK STEEL MILL | Hyundai Industrial vs. Insun Environment New | Hyundai Industrial vs. BooKook Steel Co | Hyundai Industrial vs. Wonil Special Steel |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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