Correlation Between Cube Entertainment and Nuintek CoLtd
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Nuintek CoLtd 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 Nuintek CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Nuintek CoLtd, you can compare the effects of market volatilities on Cube Entertainment and Nuintek CoLtd 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 Nuintek CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Nuintek CoLtd.
Diversification Opportunities for Cube Entertainment and Nuintek CoLtd
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cube and Nuintek is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Nuintek CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuintek CoLtd 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 Nuintek CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuintek CoLtd has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Nuintek CoLtd go up and down completely randomly.
Pair Corralation between Cube Entertainment and Nuintek CoLtd
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.97 times more return on investment than Nuintek CoLtd. However, Cube Entertainment is 1.97 times more volatile than Nuintek CoLtd. It trades about -0.02 of its potential returns per unit of risk. Nuintek CoLtd is currently generating about -0.21 per unit of risk. If you would invest 1,500,000 in Cube Entertainment on September 12, 2024 and sell it today you would lose (40,000) from holding Cube Entertainment or give up 2.67% 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. Nuintek CoLtd
Performance |
| Timeline |
| Cube Entertainment |
| Nuintek CoLtd |
Cube Entertainment and Nuintek CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Nuintek CoLtd
The main advantage of trading using opposite Cube Entertainment and Nuintek CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Nuintek CoLtd 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 Nuintek CoLtd will offset losses from the drop in Nuintek CoLtd's long position.| Cube Entertainment vs. Mobileleader CoLtd | Cube Entertainment vs. Dongwon Metal Co | Cube Entertainment vs. KT Submarine Telecom | Cube Entertainment vs. Hanjoo Light Metal |
| Nuintek CoLtd vs. Cube Entertainment | Nuintek CoLtd vs. Dreamus Company | Nuintek CoLtd vs. LG Energy Solution | Nuintek CoLtd vs. Dongwon System |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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