Correlation Between Cube Entertainment and LX Semicon
Can any of the company-specific risk be diversified away by investing in both Cube Entertainment and LX Semicon 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 LX Semicon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cube Entertainment and LX Semicon Co, you can compare the effects of market volatilities on Cube Entertainment and LX Semicon 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 LX Semicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cube Entertainment and LX Semicon.
Diversification Opportunities for Cube Entertainment and LX Semicon
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cube and 108320 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cube Entertainment and LX Semicon Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LX Semicon 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 LX Semicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LX Semicon has no effect on the direction of Cube Entertainment i.e., Cube Entertainment and LX Semicon go up and down completely randomly.
Pair Corralation between Cube Entertainment and LX Semicon
Assuming the 90 days trading horizon Cube Entertainment is expected to generate 1.45 times more return on investment than LX Semicon. However, Cube Entertainment is 1.45 times more volatile than LX Semicon Co. It trades about 0.14 of its potential returns per unit of risk. LX Semicon Co is currently generating about 0.0 per unit of risk. 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 |
Cube Entertainment vs. LX Semicon Co
Performance |
Timeline |
Cube Entertainment |
LX Semicon |
Cube Entertainment and LX Semicon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cube Entertainment and LX Semicon
The main advantage of trading using opposite Cube Entertainment and LX Semicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cube Entertainment position performs unexpectedly, LX Semicon 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 LX Semicon will offset losses from the drop in LX Semicon's long position.Cube Entertainment vs. PlayD Co | Cube Entertainment vs. Neungyule Education | Cube Entertainment vs. Solution Advanced Technology | Cube Entertainment vs. Busan Industrial Co |
LX Semicon vs. Cube Entertainment | LX Semicon vs. Dreamus Company | LX Semicon vs. LG Energy Solution | LX Semicon vs. Dongwon System |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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