Correlation Between Kuke Music and Manchester United
Can any of the company-specific risk be diversified away by investing in both Kuke Music and Manchester United 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 Kuke Music and Manchester United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuke Music Holding and Manchester United, you can compare the effects of market volatilities on Kuke Music and Manchester United 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 Kuke Music with a short position of Manchester United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuke Music and Manchester United.
Diversification Opportunities for Kuke Music and Manchester United
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuke and Manchester is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kuke Music Holding and Manchester United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manchester United and Kuke Music 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 Kuke Music Holding are associated (or correlated) with Manchester United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manchester United has no effect on the direction of Kuke Music i.e., Kuke Music and Manchester United go up and down completely randomly.
Pair Corralation between Kuke Music and Manchester United
Given the investment horizon of 90 days Kuke Music Holding is expected to generate 2.81 times more return on investment than Manchester United. However, Kuke Music is 2.81 times more volatile than Manchester United. It trades about 0.03 of its potential returns per unit of risk. Manchester United is currently generating about 0.0 per unit of risk. If you would invest 61.00 in Kuke Music Holding on August 27, 2024 and sell it today you would lose (24.00) from holding Kuke Music Holding or give up 39.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuke Music Holding vs. Manchester United
Performance |
| Timeline |
| Kuke Music Holding |
| Manchester United |
Kuke Music and Manchester United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuke Music and Manchester United
The main advantage of trading using opposite Kuke Music and Manchester United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuke Music position performs unexpectedly, Manchester United 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 Manchester United will offset losses from the drop in Manchester United's long position.| Kuke Music vs. Cinemark Holdings | Kuke Music vs. News Corp B | Kuke Music vs. Marcus | Kuke Music vs. Liberty Media |
| Manchester United vs. Endeavor Group Holdings | Manchester United vs. Live Nation Entertainment | Manchester United vs. Warner Music Group | Manchester United 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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