Correlation Between Cube Entertainment and SK IE
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and SK IE 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 SK IE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and SK IE Technology, you can compare the effects of market volatilities on Cube Entertainment and SK IE 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 SK IE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and SK IE.
Diversification Opportunities for Cube Entertainment and SK IE
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cube and 361610 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and SK IE Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK IE 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 SK IE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK IE Technology has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and SK IE go up and down completely randomly.
Pair Corralation between Cube Entertainment and SK IE
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 0.84 times more return on investment than SK IE. However, Cube Entertainment is 1.19 times less risky than SK IE. It trades about 0.32 of its potential returns per unit of risk. SK IE Technology is currently generating about -0.38 per unit of risk. If you would invest 1,379,000 in Cube Entertainment on September 3, 2024 and sell it today you would earn a total of 259,000 from holding Cube Entertainment or generate 18.78% 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. SK IE Technology
Performance |
| Timeline |
| Cube Entertainment |
| SK IE Technology |
Cube Entertainment and SK IE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cube Entertainment and SK IE
The main advantage of trading using opposite Cube Entertainment and SK IE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, SK IE 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 SK IE will offset losses from the drop in SK IE's long position.| Cube Entertainment vs. Alton Sports CoLtd | Cube Entertainment vs. Youl Chon Chemical | Cube Entertainment vs. Miwon Chemical | Cube Entertainment vs. Chin Yang Chemical |
| SK IE vs. Home Center Holdings | SK IE vs. Hyundai Home Shopping | SK IE vs. Lotte Non Life Insurance | SK IE vs. Air Busan Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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