Correlation Between SNM Gobal and Kuke Music
Can any of the company-specific risk be diversified away by investing in both SNM Gobal 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 SNM Gobal and Kuke Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SNM Gobal Holdings and Kuke Music Holding, you can compare the effects of market volatilities on SNM Gobal 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 SNM Gobal with a short position of Kuke Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNM Gobal and Kuke Music.
Diversification Opportunities for SNM Gobal and Kuke Music
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SNM and Kuke is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SNM Gobal Holdings 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 SNM Gobal 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 SNM Gobal Holdings 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 SNM Gobal i.e., SNM Gobal and Kuke Music go up and down completely randomly.
Pair Corralation between SNM Gobal and Kuke Music
If you would invest 0.01 in SNM Gobal Holdings on August 30, 2024 and sell it today you would earn a total of 0.00 from holding SNM Gobal Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SNM Gobal Holdings vs. Kuke Music Holding
Performance |
| Timeline |
| SNM Gobal Holdings |
| Kuke Music Holding |
SNM Gobal and Kuke Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNM Gobal and Kuke Music
The main advantage of trading using opposite SNM Gobal and Kuke Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNM Gobal 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.| SNM Gobal vs. Warner Music Group | SNM Gobal vs. Live Nation Entertainment | SNM Gobal vs. Atlanta Braves Holdings, | SNM Gobal vs. Warner Bros Discovery |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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