Correlation Between Cube Entertainment and Haesung DS
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Haesung DS 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 Haesung DS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Haesung DS Co, you can compare the effects of market volatilities on Cube Entertainment and Haesung DS 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 Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Haesung DS.
Diversification Opportunities for Cube Entertainment and Haesung DS
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cube and Haesung is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS 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 Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Haesung DS go up and down completely randomly.
Pair Corralation between Cube Entertainment and Haesung DS
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.06 times more return on investment than Haesung DS. However, Cube Entertainment is 1.06 times more volatile than Haesung DS Co. It trades about -0.01 of its potential returns per unit of risk. Haesung DS Co is currently generating about -0.1 per unit of risk. If you would invest 1,929,000 in Cube Entertainment on September 20, 2024 and sell it today you would lose (277,000) from holding Cube Entertainment or give up 14.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Cube Entertainment vs. Haesung DS Co
Performance |
| Timeline |
| Cube Entertainment |
| Haesung DS |
Cube Entertainment and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Haesung DS
The main advantage of trading using opposite Cube Entertainment and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS'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 |
| Haesung DS vs. Cube Entertainment | Haesung DS vs. Dreamus Company | Haesung DS vs. LG Energy Solution | Haesung DS 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |