Correlation Between Haesung DS and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Haesung DS and Cube Entertainment 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 Haesung DS and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haesung DS Co and Cube Entertainment, you can compare the effects of market volatilities on Haesung DS and Cube Entertainment 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 Haesung DS with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haesung DS and Cube Entertainment.
Diversification Opportunities for Haesung DS and Cube Entertainment
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Haesung and Cube is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Haesung DS Co and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and Haesung DS 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 Haesung DS Co are associated (or correlated) with Cube Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cube Entertainment has no effect on the direction of Haesung DS i.e., Haesung DS and Cube Entertainment go up and down completely randomly.
Pair Corralation between Haesung DS and Cube Entertainment
Assuming the 90 days trading horizon Haesung DS is expected to generate 2.27 times less return on investment than Cube Entertainment. But when comparing it to its historical volatility, Haesung DS Co is 1.19 times less risky than Cube Entertainment. It trades about 0.07 of its potential returns per unit of risk. Cube Entertainment is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,488,000 in Cube Entertainment on September 20, 2024 and sell it today you would earn a total of 164,000 from holding Cube Entertainment or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Haesung DS Co vs. Cube Entertainment
Performance |
| Timeline |
| Haesung DS |
| Cube Entertainment |
Haesung DS and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haesung DS and Cube Entertainment
The main advantage of trading using opposite Haesung DS and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haesung DS position performs unexpectedly, Cube Entertainment 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 Cube Entertainment will offset losses from the drop in Cube Entertainment's long position.| Haesung DS vs. Cube Entertainment | Haesung DS vs. Dreamus Company | Haesung DS vs. LG Energy Solution | Haesung DS vs. Dongwon System |
| Cube Entertainment vs. PlayD Co | Cube Entertainment vs. Neungyule Education | Cube Entertainment vs. Solution Advanced Technology | Cube Entertainment vs. Busan Industrial 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |