Correlation Between Kuke Music and SNM Gobal
Can any of the company-specific risk be diversified away by investing in both Kuke Music and SNM Gobal 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 SNM Gobal 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 SNM Gobal Holdings, you can compare the effects of market volatilities on Kuke Music and SNM Gobal 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 SNM Gobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuke Music and SNM Gobal.
Diversification Opportunities for Kuke Music and SNM Gobal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kuke and SNM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kuke Music Holding and SNM Gobal Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNM Gobal Holdings 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 SNM Gobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNM Gobal Holdings has no effect on the direction of Kuke Music i.e., Kuke Music and SNM Gobal go up and down completely randomly.
Pair Corralation between Kuke Music and SNM Gobal
Given the investment horizon of 90 days Kuke Music is expected to generate 10.84 times less return on investment than SNM Gobal. But when comparing it to its historical volatility, Kuke Music Holding is 3.08 times less risky than SNM Gobal. It trades about 0.03 of its potential returns per unit of risk. SNM Gobal Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.06 in SNM Gobal Holdings on August 30, 2024 and sell it today you would lose (0.05) from holding SNM Gobal Holdings or give up 83.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuke Music Holding vs. SNM Gobal Holdings
Performance |
| Timeline |
| Kuke Music Holding |
| SNM Gobal Holdings |
Kuke Music and SNM Gobal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuke Music and SNM Gobal
The main advantage of trading using opposite Kuke Music and SNM Gobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuke Music position performs unexpectedly, SNM Gobal 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 SNM Gobal will offset losses from the drop in SNM Gobal's long position.| Kuke Music vs. Cinemark Holdings | Kuke Music vs. News Corp B | Kuke Music vs. Marcus | Kuke Music vs. Liberty Media |
| SNM Gobal vs. Warner Music Group | SNM Gobal vs. Live Nation Entertainment | SNM Gobal vs. Atlanta Braves Holdings, | SNM Gobal vs. Warner Bros Discovery |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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