Correlation Between Cube Entertainment and UJU Electronics
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and UJU Electronics 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 UJU Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and UJU Electronics Co, you can compare the effects of market volatilities on Cube Entertainment and UJU Electronics 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 UJU Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and UJU Electronics.
Diversification Opportunities for Cube Entertainment and UJU Electronics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cube and UJU is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and UJU Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UJU Electronics 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 UJU Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UJU Electronics has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and UJU Electronics go up and down completely randomly.
Pair Corralation between Cube Entertainment and UJU Electronics
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.0 times more return on investment than UJU Electronics. However, Cube Entertainment is 1.0 times less risky than UJU Electronics. It trades about 0.23 of its potential returns per unit of risk. UJU Electronics Co is currently generating about 0.0 per unit of risk. If you would invest 1,460,000 in Cube Entertainment on September 15, 2024 and sell it today you would earn a total of 285,000 from holding Cube Entertainment or generate 19.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. UJU Electronics Co
Performance |
| Timeline |
| Cube Entertainment |
| UJU Electronics |
Cube Entertainment and UJU Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and UJU Electronics
The main advantage of trading using opposite Cube Entertainment and UJU Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, UJU Electronics 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 UJU Electronics will offset losses from the drop in UJU Electronics' long position.| Cube Entertainment vs. PlayD Co | Cube Entertainment vs. Neungyule Education | Cube Entertainment vs. Solution Advanced Technology | Cube Entertainment vs. Busan Industrial Co |
| UJU Electronics vs. Cube Entertainment | UJU Electronics vs. Dreamus Company | UJU Electronics vs. LG Energy Solution | UJU Electronics 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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