Correlation Between Cube Entertainment and Koh Young
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Koh Young 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 Koh Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Koh Young Technology, you can compare the effects of market volatilities on Cube Entertainment and Koh Young 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 Koh Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Koh Young.
Diversification Opportunities for Cube Entertainment and Koh Young
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cube and Koh is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Koh Young Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koh Young Technology 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 Koh Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koh Young Technology has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Koh Young go up and down completely randomly.
Pair Corralation between Cube Entertainment and Koh Young
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.47 times more return on investment than Koh Young. However, Cube Entertainment is 1.47 times more volatile than Koh Young Technology. It trades about 0.12 of its potential returns per unit of risk. Koh Young Technology is currently generating about 0.01 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. Koh Young Technology
Performance |
| Timeline |
| Cube Entertainment |
| Koh Young Technology |
Cube Entertainment and Koh Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Koh Young
The main advantage of trading using opposite Cube Entertainment and Koh Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Koh Young 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 Koh Young will offset losses from the drop in Koh Young'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 |
| Koh Young vs. Cube Entertainment | Koh Young vs. Dreamus Company | Koh Young vs. LG Energy Solution | Koh Young 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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