Correlation Between Cube Entertainment and Insung Information
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Insung Information 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 Insung Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Insung Information Co, you can compare the effects of market volatilities on Cube Entertainment and Insung Information 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 Insung Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Insung Information.
Diversification Opportunities for Cube Entertainment and Insung Information
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cube and Insung is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Insung Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insung Information 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 Insung Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insung Information has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Insung Information go up and down completely randomly.
Pair Corralation between Cube Entertainment and Insung Information
Assuming the 90 days trading horizon Cube Entertainment is expected to under-perform the Insung Information. But the stock apears to be less risky and, when comparing its historical volatility, Cube Entertainment is 1.63 times less risky than Insung Information. The stock trades about -0.36 of its potential returns per unit of risk. The Insung Information Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 181,100 in Insung Information Co on November 3, 2024 and sell it today you would earn a total of 4,400 from holding Insung Information Co or generate 2.43% 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. Insung Information Co
Performance |
| Timeline |
| Cube Entertainment |
| Insung Information |
Cube Entertainment and Insung Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Insung Information
The main advantage of trading using opposite Cube Entertainment and Insung Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Insung Information 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 Insung Information will offset losses from the drop in Insung Information's long position.| Cube Entertainment vs. Golden Bridge Investment | Cube Entertainment vs. System and Application | Cube Entertainment vs. Moadata Co | Cube Entertainment vs. Clean Science co |
| Insung Information vs. Samsung Electronics Co | Insung Information vs. Samsung Electronics Co | Insung Information vs. Hyundai Motor Co | Insung Information vs. Hyundai Motor |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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