Correlation Between Kuke Music and Cheer Holding
Can any of the company-specific risk be diversified away by investing in both Kuke Music and Cheer Holding 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 Cheer Holding 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 Cheer Holding, you can compare the effects of market volatilities on Kuke Music and Cheer Holding 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 Cheer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuke Music and Cheer Holding.
Diversification Opportunities for Kuke Music and Cheer Holding
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuke and Cheer is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kuke Music Holding and Cheer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheer Holding 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 Cheer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheer Holding has no effect on the direction of Kuke Music i.e., Kuke Music and Cheer Holding go up and down completely randomly.
Pair Corralation between Kuke Music and Cheer Holding
Given the investment horizon of 90 days Kuke Music Holding is expected to generate 1.9 times more return on investment than Cheer Holding. However, Kuke Music is 1.9 times more volatile than Cheer Holding. It trades about 0.03 of its potential returns per unit of risk. Cheer Holding is currently generating about -0.03 per unit of risk. If you would invest 590.00 in Kuke Music Holding on March 27, 2025 and sell it today you would lose (292.00) from holding Kuke Music Holding or give up 49.49% 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. Cheer Holding
Performance |
| Timeline |
| Kuke Music Holding |
| Cheer Holding |
Kuke Music and Cheer Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuke Music and Cheer Holding
The main advantage of trading using opposite Kuke Music and Cheer Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuke Music position performs unexpectedly, Cheer Holding 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 Cheer Holding will offset losses from the drop in Cheer Holding's long position.| Kuke Music vs. Cinemark Holdings | Kuke Music vs. News Corp B | Kuke Music vs. Marcus | Kuke Music vs. Liberty Media |
| Cheer Holding vs. Bilibili | Cheer Holding vs. Gamehost | Cheer Holding vs. Global Gaming Technologies | Cheer Holding vs. Games Workshop Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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