Correlation Between Iljin Display and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Iljin Display 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 Iljin Display and Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iljin Display and Cube Entertainment, you can compare the effects of market volatilities on Iljin Display 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 Iljin Display with a short position of Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iljin Display and Cube Entertainment.
Diversification Opportunities for Iljin Display and Cube Entertainment
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iljin and Cube is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Iljin Display and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment and Iljin Display 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 Iljin Display 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 Iljin Display i.e., Iljin Display and Cube Entertainment go up and down completely randomly.
Pair Corralation between Iljin Display and Cube Entertainment
Assuming the 90 days trading horizon Iljin Display is expected to under-perform the Cube Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Iljin Display is 2.47 times less risky than Cube Entertainment. The stock trades about -0.21 of its potential returns per unit of risk. The Cube Entertainment is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,462,000 in Cube Entertainment on September 25, 2024 and sell it today you would earn a total of 136,000 from holding Cube Entertainment or generate 9.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Iljin Display vs. Cube Entertainment
Performance |
Timeline |
Iljin Display |
Cube Entertainment |
Iljin Display and Cube Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iljin Display and Cube Entertainment
The main advantage of trading using opposite Iljin Display and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iljin Display 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.Iljin Display vs. SK IE Technology | Iljin Display vs. Solus Advanced Materials | Iljin Display vs. DAEDUCK ELECTRONICS CoLtd | Iljin Display vs. Sungmoon Electronics Co |
Cube Entertainment vs. Han Kook Steel | Cube Entertainment vs. TK Chemical | Cube Entertainment vs. Hankook Steel Co | Cube Entertainment vs. Bookook Steel |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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