Correlation Between Cube Entertainment and GAMEVIL
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and GAMEVIL 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 GAMEVIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and GAMEVIL, you can compare the effects of market volatilities on Cube Entertainment and GAMEVIL 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 GAMEVIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and GAMEVIL.
Diversification Opportunities for Cube Entertainment and GAMEVIL
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cube and GAMEVIL is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and GAMEVIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMEVIL 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 GAMEVIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMEVIL has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and GAMEVIL go up and down completely randomly.
Pair Corralation between Cube Entertainment and GAMEVIL
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 0.74 times more return on investment than GAMEVIL. However, Cube Entertainment is 1.35 times less risky than GAMEVIL. It trades about 0.01 of its potential returns per unit of risk. GAMEVIL is currently generating about 0.0 per unit of risk. If you would invest 1,695,000 in Cube Entertainment on September 14, 2024 and sell it today you would lose (52,000) from holding Cube Entertainment or give up 3.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. GAMEVIL
Performance |
| Timeline |
| Cube Entertainment |
| GAMEVIL |
Cube Entertainment and GAMEVIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and GAMEVIL
The main advantage of trading using opposite Cube Entertainment and GAMEVIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, GAMEVIL 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 GAMEVIL will offset losses from the drop in GAMEVIL'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 |
| GAMEVIL vs. YG Entertainment | GAMEVIL vs. JYP Entertainment | GAMEVIL vs. Cube Entertainment | GAMEVIL vs. FNC Entertainment Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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