Correlation Between Cube Entertainment and Sangsangin Investment
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Sangsangin Investment 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 Sangsangin Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Sangsangin Investment Securities, you can compare the effects of market volatilities on Cube Entertainment and Sangsangin Investment 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 Sangsangin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Sangsangin Investment.
Diversification Opportunities for Cube Entertainment and Sangsangin Investment
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cube and Sangsangin is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Sangsangin Investment Securiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsangin Investment 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 Sangsangin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsangin Investment has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Sangsangin Investment go up and down completely randomly.
Pair Corralation between Cube Entertainment and Sangsangin Investment
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.83 times more return on investment than Sangsangin Investment. However, Cube Entertainment is 1.83 times more volatile than Sangsangin Investment Securities. It trades about 0.0 of its potential returns per unit of risk. Sangsangin Investment Securities is currently generating about -0.08 per unit of risk. If you would invest 2,030,000 in Cube Entertainment on September 1, 2024 and sell it today you would lose (392,000) from holding Cube Entertainment or give up 19.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. Sangsangin Investment Securiti
Performance |
| Timeline |
| Cube Entertainment |
| Sangsangin Investment |
Cube Entertainment and Sangsangin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Sangsangin Investment
The main advantage of trading using opposite Cube Entertainment and Sangsangin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Sangsangin Investment 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 Sangsangin Investment will offset losses from the drop in Sangsangin Investment's long position.The idea behind Cube Entertainment and Sangsangin Investment Securities pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sangsangin Investment vs. Samsung Electronics Co | Sangsangin Investment vs. Samsung Electronics Co | Sangsangin Investment vs. KB Financial Group | Sangsangin Investment vs. Shinhan Financial Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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