Correlation Between Pop Culture and Kuke Music
Can any of the company-specific risk be diversified away by investing in both Pop Culture and Kuke Music 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 Pop Culture and Kuke Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pop Culture Group and Kuke Music Holding, you can compare the effects of market volatilities on Pop Culture and Kuke Music 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 Pop Culture with a short position of Kuke Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pop Culture and Kuke Music.
Diversification Opportunities for Pop Culture and Kuke Music
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pop and Kuke is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Pop Culture Group and Kuke Music Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuke Music Holding and Pop Culture 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 Pop Culture Group are associated (or correlated) with Kuke Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuke Music Holding has no effect on the direction of Pop Culture i.e., Pop Culture and Kuke Music go up and down completely randomly.
Pair Corralation between Pop Culture and Kuke Music
Given the investment horizon of 90 days Pop Culture Group is expected to generate 0.17 times more return on investment than Kuke Music. However, Pop Culture Group is 5.76 times less risky than Kuke Music. It trades about -0.11 of its potential returns per unit of risk. Kuke Music Holding is currently generating about -0.05 per unit of risk. If you would invest 124.00 in Pop Culture Group on August 26, 2024 and sell it today you would lose (10.00) from holding Pop Culture Group or give up 8.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pop Culture Group vs. Kuke Music Holding
Performance |
| Timeline |
| Pop Culture Group |
| Kuke Music Holding |
Pop Culture and Kuke Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pop Culture and Kuke Music
The main advantage of trading using opposite Pop Culture and Kuke Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pop Culture position performs unexpectedly, Kuke Music 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 Kuke Music will offset losses from the drop in Kuke Music's long position.| Pop Culture vs. MultiMetaVerse Holdings Limited | Pop Culture vs. Hollywall Entertainment | Pop Culture vs. Kuke Music Holding | Pop Culture vs. Reading International |
| Kuke Music vs. Cinemark Holdings | Kuke Music vs. News Corp B | Kuke Music vs. Marcus | Kuke Music vs. Liberty Media |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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