Correlation Between Cube Entertainment and Xavis
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Xavis 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 Xavis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Xavis Co, you can compare the effects of market volatilities on Cube Entertainment and Xavis 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 Xavis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Xavis.
Diversification Opportunities for Cube Entertainment and Xavis
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cube and Xavis is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Xavis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xavis 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 Xavis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xavis has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Xavis go up and down completely randomly.
Pair Corralation between Cube Entertainment and Xavis
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.39 times more return on investment than Xavis. However, Cube Entertainment is 1.39 times more volatile than Xavis Co. It trades about 0.19 of its potential returns per unit of risk. Xavis Co is currently generating about -0.41 per unit of risk. If you would invest 1,325,000 in Cube Entertainment on September 3, 2024 and sell it today you would earn a total of 313,000 from holding Cube Entertainment or generate 23.62% 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. Xavis Co
Performance |
| Timeline |
| Cube Entertainment |
| Xavis |
Cube Entertainment and Xavis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Xavis
The main advantage of trading using opposite Cube Entertainment and Xavis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Xavis 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 Xavis will offset losses from the drop in Xavis' 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 |
| Xavis vs. DSC Investment | Xavis vs. SK Chemicals Co | Xavis vs. Golden Bridge Investment | Xavis vs. Woori Technology Investment |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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