Correlation Between Cube Entertainment and FNC Entertainment
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and FNC Entertainment 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 FNC Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and FNC Entertainment Co, you can compare the effects of market volatilities on Cube Entertainment and FNC Entertainment 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 FNC Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and FNC Entertainment.
Diversification Opportunities for Cube Entertainment and FNC Entertainment
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cube and FNC is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and FNC Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNC Entertainment 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 FNC Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNC Entertainment has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and FNC Entertainment go up and down completely randomly.
Pair Corralation between Cube Entertainment and FNC Entertainment
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.51 times more return on investment than FNC Entertainment. However, Cube Entertainment is 1.51 times more volatile than FNC Entertainment Co. It trades about 0.0 of its potential returns per unit of risk. FNC Entertainment Co is currently generating about -0.04 per unit of risk. If you would invest 2,090,000 in Cube Entertainment on August 25, 2024 and sell it today you would lose (600,000) from holding Cube Entertainment or give up 28.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. FNC Entertainment Co
Performance |
| Timeline |
| Cube Entertainment |
| FNC Entertainment |
Cube Entertainment and FNC Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and FNC Entertainment
The main advantage of trading using opposite Cube Entertainment and FNC Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, FNC Entertainment 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 FNC Entertainment will offset losses from the drop in FNC Entertainment'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 |
| FNC Entertainment vs. SM Entertainment Co | FNC Entertainment vs. LG Chemicals | FNC Entertainment vs. Cube Entertainment | FNC Entertainment vs. Daejung Chemicals Metals |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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