Correlation Between Cube Entertainment and Atec
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Atec 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 Atec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Atec Co, you can compare the effects of market volatilities on Cube Entertainment and Atec 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 Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Atec.
Diversification Opportunities for Cube Entertainment and Atec
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cube and Atec is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Atec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec 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 Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Atec go up and down completely randomly.
Pair Corralation between Cube Entertainment and Atec
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 15.72 times less return on investment than Atec. But when comparing it to its historical volatility, Cube Entertainment is 1.83 times less risky than Atec. It trades about 0.01 of its potential returns per unit of risk. Atec Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,287,830 in Atec Co on September 14, 2024 and sell it today you would earn a total of 2,107,170 from holding Atec Co or generate 163.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. Atec Co
Performance |
| Timeline |
| Cube Entertainment |
| Atec |
Cube Entertainment and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Atec
The main advantage of trading using opposite Cube Entertainment and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec'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 |
| Atec vs. Digital Power Communications | Atec vs. Lotte Data Communication | Atec vs. Seoul Electronics Telecom | Atec vs. Korea Information Communications |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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