Correlation Between Kuke Music and NETGEAR
Can any of the company-specific risk be diversified away by investing in both Kuke Music and NETGEAR 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 NETGEAR 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 NETGEAR, you can compare the effects of market volatilities on Kuke Music and NETGEAR 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 NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuke Music and NETGEAR.
Diversification Opportunities for Kuke Music and NETGEAR
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuke and NETGEAR is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kuke Music Holding and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR 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 NETGEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETGEAR has no effect on the direction of Kuke Music i.e., Kuke Music and NETGEAR go up and down completely randomly.
Pair Corralation between Kuke Music and NETGEAR
Given the investment horizon of 90 days Kuke Music is expected to generate 3.48 times less return on investment than NETGEAR. In addition to that, Kuke Music is 1.33 times more volatile than NETGEAR. It trades about 0.03 of its total potential returns per unit of risk. NETGEAR is currently generating about 0.14 per unit of volatility. If you would invest 2,260 in NETGEAR on April 13, 2025 and sell it today you would earn a total of 654.00 from holding NETGEAR or generate 28.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuke Music Holding vs. NETGEAR
Performance |
| Timeline |
| Kuke Music Holding |
| NETGEAR |
Kuke Music and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuke Music and NETGEAR
The main advantage of trading using opposite Kuke Music and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuke Music position performs unexpectedly, NETGEAR 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 NETGEAR will offset losses from the drop in NETGEAR's long position.| Kuke Music vs. Imax Corp | Kuke Music vs. Live Nation Entertainment | Kuke Music vs. Sirius XM Holding | Kuke Music vs. iQIYI Inc |
| NETGEAR vs. Knowles Cor | NETGEAR vs. Extreme Networks | NETGEAR vs. KVH Industries | NETGEAR vs. Comtech Telecommunications Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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