Correlation Between CuriosityStream and Kuke Music
Can any of the company-specific risk be diversified away by investing in both CuriosityStream 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 CuriosityStream and Kuke Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CuriosityStream and Kuke Music Holding, you can compare the effects of market volatilities on CuriosityStream 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 CuriosityStream with a short position of Kuke Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of CuriosityStream and Kuke Music.
Diversification Opportunities for CuriosityStream and Kuke Music
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CuriosityStream and Kuke is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CuriosityStream 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 CuriosityStream 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 CuriosityStream 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 CuriosityStream i.e., CuriosityStream and Kuke Music go up and down completely randomly.
Pair Corralation between CuriosityStream and Kuke Music
Assuming the 90 days horizon CuriosityStream is expected to generate 16.16 times more return on investment than Kuke Music. However, CuriosityStream is 16.16 times more volatile than Kuke Music Holding. It trades about 0.15 of its potential returns per unit of risk. Kuke Music Holding is currently generating about 0.0 per unit of risk. If you would invest 1.25 in CuriosityStream on August 26, 2024 and sell it today you would earn a total of 0.81 from holding CuriosityStream or generate 64.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.53% |
| Values | Daily Returns |
CuriosityStream vs. Kuke Music Holding
Performance |
| Timeline |
| CuriosityStream |
| Kuke Music Holding |
CuriosityStream and Kuke Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CuriosityStream and Kuke Music
The main advantage of trading using opposite CuriosityStream and Kuke Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CuriosityStream 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.| CuriosityStream vs. Walt Disney | CuriosityStream vs. Roku Inc | CuriosityStream vs. Netflix | CuriosityStream vs. AMC Entertainment Holdings |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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