Correlation Between Cube Entertainment and System
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and System 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 System into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and System and Application, you can compare the effects of market volatilities on Cube Entertainment and System 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 System. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and System.
Diversification Opportunities for Cube Entertainment and System
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cube and System is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and System and Application in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on System and Application 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 System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of System and Application has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and System go up and down completely randomly.
Pair Corralation between Cube Entertainment and System
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.64 times more return on investment than System. However, Cube Entertainment is 1.64 times more volatile than System and Application. It trades about 0.31 of its potential returns per unit of risk. System and Application is currently generating about 0.14 per unit of risk. If you would invest 1,373,000 in Cube Entertainment on December 4, 2024 and sell it today you would earn a total of 276,000 from holding Cube Entertainment or generate 20.1% 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. System and Application
Performance |
| Timeline |
| Cube Entertainment |
| System and Application |
Cube Entertainment and System Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and System
The main advantage of trading using opposite Cube Entertainment and System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, System 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 System will offset losses from the drop in System's long position.| Cube Entertainment vs. Barunson Entertainment Arts | Cube Entertainment vs. Samlip General Foods | Cube Entertainment vs. Next Entertainment World | Cube Entertainment vs. ChipsMedia |
| System vs. Stic Investments | System vs. NH Investment Securities | System vs. Yura Tech Co | System vs. Golden Bridge Investment |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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