Correlation Between Cube Entertainment and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Aprogen Healthcare 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 Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Aprogen Healthcare Games, you can compare the effects of market volatilities on Cube Entertainment and Aprogen Healthcare 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 Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Aprogen Healthcare.
Diversification Opportunities for Cube Entertainment and Aprogen Healthcare
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cube and Aprogen is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Aprogen Healthcare Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen Healthcare Games 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 Aprogen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen Healthcare Games has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Cube Entertainment and Aprogen Healthcare
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 0.86 times more return on investment than Aprogen Healthcare. However, Cube Entertainment is 1.16 times less risky than Aprogen Healthcare. It trades about 0.03 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.04 per unit of risk. If you would invest 1,488,000 in Cube Entertainment on September 14, 2024 and sell it today you would earn a total of 257,000 from holding Cube Entertainment or generate 17.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Cube Entertainment vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Cube Entertainment |
| Aprogen Healthcare Games |
Cube Entertainment and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Aprogen Healthcare
The main advantage of trading using opposite Cube Entertainment and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Aprogen Healthcare 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 Aprogen Healthcare will offset losses from the drop in Aprogen Healthcare'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 |
| Aprogen Healthcare vs. Cube Entertainment | Aprogen Healthcare vs. Dreamus Company | Aprogen Healthcare vs. LG Energy Solution | Aprogen Healthcare 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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