Correlation Between Kuke Music and Microsoft
Can any of the company-specific risk be diversified away by investing in both Kuke Music and Microsoft 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 Microsoft 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 Microsoft, you can compare the effects of market volatilities on Kuke Music and Microsoft 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 Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuke Music and Microsoft.
Diversification Opportunities for Kuke Music and Microsoft
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kuke and Microsoft is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kuke Music Holding and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft 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 Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of Kuke Music i.e., Kuke Music and Microsoft go up and down completely randomly.
Pair Corralation between Kuke Music and Microsoft
Given the investment horizon of 90 days Kuke Music Holding is expected to under-perform the Microsoft. In addition to that, Kuke Music is 2.3 times more volatile than Microsoft. It trades about -0.31 of its total potential returns per unit of risk. Microsoft is currently generating about 0.35 per unit of volatility. If you would invest 39,454 in Microsoft on April 30, 2025 and sell it today you would earn a total of 11,796 from holding Microsoft or generate 29.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuke Music Holding vs. Microsoft
Performance |
| Timeline |
| Kuke Music Holding |
| Microsoft |
Kuke Music and Microsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuke Music and Microsoft
The main advantage of trading using opposite Kuke Music and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuke Music position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.| Kuke Music vs. Liberty Media | Kuke Music vs. Madison Square Garden | Kuke Music vs. News Corp A | Kuke Music vs. Expedia Group |
| Microsoft vs. Palantir Technologies Class | Microsoft vs. Crowdstrike Holdings | Microsoft vs. Oracle | Microsoft vs. CoreWeave, Class A |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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