Correlation Between Cube Entertainment and Jeju Semiconductor
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Jeju Semiconductor 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 Jeju Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Jeju Semiconductor Corp, you can compare the effects of market volatilities on Cube Entertainment and Jeju Semiconductor 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 Jeju Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Jeju Semiconductor.
Diversification Opportunities for Cube Entertainment and Jeju Semiconductor
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cube and Jeju is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Jeju Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Semiconductor Corp 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 Jeju Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Semiconductor Corp has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Jeju Semiconductor go up and down completely randomly.
Pair Corralation between Cube Entertainment and Jeju Semiconductor
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.09 times more return on investment than Jeju Semiconductor. However, Cube Entertainment is 1.09 times more volatile than Jeju Semiconductor Corp. It trades about 0.12 of its potential returns per unit of risk. Jeju Semiconductor Corp is currently generating about -0.17 per unit of risk. If you would invest 1,423,000 in Cube Entertainment on September 13, 2024 and sell it today you would earn a total of 115,000 from holding Cube Entertainment or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. Jeju Semiconductor Corp
Performance |
| Timeline |
| Cube Entertainment |
| Jeju Semiconductor Corp |
Cube Entertainment and Jeju Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Jeju Semiconductor
The main advantage of trading using opposite Cube Entertainment and Jeju Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Jeju Semiconductor 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 Jeju Semiconductor will offset losses from the drop in Jeju Semiconductor's long position.| Cube Entertainment vs. Daishin Information Communications | Cube Entertainment vs. CG Hi Tech | Cube Entertainment vs. Samyoung Electronics Co | Cube Entertainment vs. Derkwoo Electronics Co |
| Jeju Semiconductor vs. Cube Entertainment | Jeju Semiconductor vs. Dreamus Company | Jeju Semiconductor vs. LG Energy Solution | Jeju Semiconductor 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 CEOs Directory module to screen CEOs from public companies around the world.
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