Correlation Between Cube Entertainment and V One
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and V One 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 V One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and V One Tech Co, you can compare the effects of market volatilities on Cube Entertainment and V One 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 V One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and V One.
Diversification Opportunities for Cube Entertainment and V One
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cube and 251630 is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and V One Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V One Tech 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 V One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V One Tech has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and V One go up and down completely randomly.
Pair Corralation between Cube Entertainment and V One
Assuming the 90 days trading horizon Cube Entertainment is expected to under-perform the V One. But the stock apears to be less risky and, when comparing its historical volatility, Cube Entertainment is 2.32 times less risky than V One. The stock trades about -0.38 of its potential returns per unit of risk. The V One Tech Co is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 396,000 in V One Tech Co on October 30, 2024 and sell it today you would earn a total of 77,000 from holding V One Tech Co or generate 19.44% 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. V One Tech Co
Performance |
| Timeline |
| Cube Entertainment |
| V One Tech |
Cube Entertainment and V One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and V One
The main advantage of trading using opposite Cube Entertainment and V One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, V One 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 V One will offset losses from the drop in V One's long position.| Cube Entertainment vs. Dongbang Transport Logistics | Cube Entertainment vs. Korea Petro Chemical | Cube Entertainment vs. Youl Chon Chemical | Cube Entertainment vs. Daishin Information Communications |
| V One vs. Samsung Electronics Co | V One vs. Samsung Electronics Co | V One vs. LG Energy Solution | V One vs. SK Hynix |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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