Correlation Between SK Chemicals and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both SK Chemicals 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 SK Chemicals and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Chemicals Co and Cube Entertainment, you can compare the effects of market volatilities on SK Chemicals 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 SK Chemicals with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Chemicals and Cube Entertainment.
Diversification Opportunities for SK Chemicals and Cube Entertainment
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 285130 and Cube is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SK Chemicals Co and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and SK Chemicals 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 SK Chemicals 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 SK Chemicals i.e., SK Chemicals and Cube Entertainment go up and down completely randomly.
Pair Corralation between SK Chemicals and Cube Entertainment
Assuming the 90 days trading horizon SK Chemicals Co is expected to under-perform the Cube Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, SK Chemicals Co is 1.41 times less risky than Cube Entertainment. The stock trades about -0.08 of its potential returns per unit of risk. The Cube Entertainment is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,398,000 in Cube Entertainment on September 4, 2024 and sell it today you would earn a total of 267,000 from holding Cube Entertainment or generate 19.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Chemicals Co vs. Cube Entertainment
Performance |
| Timeline |
| SK Chemicals |
| Cube Entertainment |
SK Chemicals and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Chemicals and Cube Entertainment
The main advantage of trading using opposite SK Chemicals and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Chemicals 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.| SK Chemicals vs. LG Chemicals | SK Chemicals vs. POSCO Holdings | SK Chemicals vs. Lotte Chemical Corp | SK Chemicals vs. Hyundai Steel |
| Cube Entertainment vs. SK Chemicals Co | Cube Entertainment vs. Sung Bo Chemicals | Cube Entertainment vs. Daedong Metals Co | Cube Entertainment vs. Kbi Metal 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |