Correlation Between Cube Entertainment and Eugene Technology
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Eugene Technology 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 Eugene Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Eugene Technology CoLtd, you can compare the effects of market volatilities on Cube Entertainment and Eugene Technology 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 Eugene Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Eugene Technology.
Diversification Opportunities for Cube Entertainment and Eugene Technology
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cube and Eugene is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Eugene Technology CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Technology CoLtd 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 Eugene Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Technology CoLtd has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Eugene Technology go up and down completely randomly.
Pair Corralation between Cube Entertainment and Eugene Technology
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.11 times more return on investment than Eugene Technology. However, Cube Entertainment is 1.11 times more volatile than Eugene Technology CoLtd. It trades about 0.22 of its potential returns per unit of risk. Eugene Technology CoLtd is currently generating about -0.04 per unit of risk. If you would invest 1,392,000 in Cube Entertainment on September 14, 2024 and sell it today you would earn a total of 251,000 from holding Cube Entertainment or generate 18.03% 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. Eugene Technology CoLtd
Performance |
| Timeline |
| Cube Entertainment |
| Eugene Technology CoLtd |
Cube Entertainment and Eugene Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Eugene Technology
The main advantage of trading using opposite Cube Entertainment and Eugene Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Eugene Technology 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 Eugene Technology will offset losses from the drop in Eugene Technology'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 |
| Eugene Technology vs. Cube Entertainment | Eugene Technology vs. Dreamus Company | Eugene Technology vs. LG Energy Solution | Eugene Technology 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 Stocks Directory module to find actively traded stocks across global markets.
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