Correlation Between Cube Entertainment and Kginicis CoLtd
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Kginicis 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 Kginicis 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 Kginicis CoLtd, you can compare the effects of market volatilities on Cube Entertainment and Kginicis 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 Kginicis CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Kginicis CoLtd.
Diversification Opportunities for Cube Entertainment and Kginicis CoLtd
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cube and Kginicis is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Kginicis CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kginicis 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 Kginicis CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kginicis CoLtd has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Kginicis CoLtd go up and down completely randomly.
Pair Corralation between Cube Entertainment and Kginicis CoLtd
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.39 times more return on investment than Kginicis CoLtd. However, Cube Entertainment is 1.39 times more volatile than Kginicis CoLtd. It trades about 0.22 of its potential returns per unit of risk. Kginicis CoLtd is currently generating about 0.12 per unit of risk. If you would invest 1,392,000 in Cube Entertainment on September 14, 2024 and sell it today you would earn a total of 251,000 from holding Cube Entertainment or generate 18.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cube Entertainment vs. Kginicis CoLtd
Performance |
| Timeline |
| Cube Entertainment |
| Kginicis CoLtd |
Cube Entertainment and Kginicis CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Kginicis CoLtd
The main advantage of trading using opposite Cube Entertainment and Kginicis CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Kginicis 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 Kginicis CoLtd will offset losses from the drop in Kginicis CoLtd's long position.| Cube Entertainment vs. PlayD Co | Cube Entertainment vs. Neungyule Education | Cube Entertainment vs. Solution Advanced Technology | Cube Entertainment vs. Busan Industrial Co |
| Kginicis CoLtd vs. Cube Entertainment | Kginicis CoLtd vs. Dreamus Company | Kginicis CoLtd vs. LG Energy Solution | Kginicis 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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