Correlation Between Cube Entertainment and Hyundai Heavy
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and Hyundai Heavy 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 Hyundai Heavy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and Hyundai Heavy Industries, you can compare the effects of market volatilities on Cube Entertainment and Hyundai Heavy 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 Hyundai Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and Hyundai Heavy.
Diversification Opportunities for Cube Entertainment and Hyundai Heavy
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cube and Hyundai is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and Hyundai Heavy Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Heavy Industries 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 Hyundai Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Heavy Industries has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and Hyundai Heavy go up and down completely randomly.
Pair Corralation between Cube Entertainment and Hyundai Heavy
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 277.2 times less return on investment than Hyundai Heavy. In addition to that, Cube Entertainment is 1.13 times more volatile than Hyundai Heavy Industries. It trades about 0.0 of its total potential returns per unit of risk. Hyundai Heavy Industries is currently generating about 0.09 per unit of volatility. If you would invest 9,740,000 in Hyundai Heavy Industries on November 27, 2024 and sell it today you would earn a total of 20,110,000 from holding Hyundai Heavy Industries or generate 206.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cube Entertainment vs. Hyundai Heavy Industries
Performance |
| Timeline |
| Cube Entertainment |
| Hyundai Heavy Industries |
Cube Entertainment and Hyundai Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and Hyundai Heavy
The main advantage of trading using opposite Cube Entertainment and Hyundai Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, Hyundai Heavy 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 Hyundai Heavy will offset losses from the drop in Hyundai Heavy's long position.| Cube Entertainment vs. Namkwang Engineering Construction | Cube Entertainment vs. Innowireless Co | Cube Entertainment vs. GS Engineering Construction | Cube Entertainment vs. Keyang Electric Machinery |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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