Correlation Between Kuke Music and Kartoon Studios,

Can any of the company-specific risk be diversified away by investing in both Kuke Music and Kartoon Studios, 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 Kartoon Studios, 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 Kartoon Studios,, you can compare the effects of market volatilities on Kuke Music and Kartoon Studios, 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 Kartoon Studios,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuke Music and Kartoon Studios,.

Diversification Opportunities for Kuke Music and Kartoon Studios,

-0.29

Correlation Coefficient

Kuke Music  Kartoon Studios,

Very good diversification

The 3 months correlation between Kuke and Kartoon is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Kuke Music Holding and Kartoon Studios, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kartoon Studios, 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 Kartoon Studios,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kartoon Studios, has no effect on the direction of Kuke Music i.e., Kuke Music and Kartoon Studios, go up and down completely randomly.

Pair Corralation between Kuke Music and Kartoon Studios,

Given the investment horizon of 90 days Kuke Music Holding is expected to under-perform the Kartoon Studios,. In addition to that, Kuke Music is 1.88 times more volatile than Kartoon Studios,. It trades about -0.02 of its total potential returns per unit of risk. Kartoon Studios, is currently generating about -0.02 per unit of volatility. If you would invest  62.00  in Kartoon Studios, on December 4, 2024 and sell it today you would lose (9.00) from holding Kartoon Studios, or give up 14.52% 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.  Kartoon Studios,

Kuke Music Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kuke Music Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's forward-looking signals remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Kartoon Studios,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kartoon Studios, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Kuke Music and Kartoon Studios,

The main advantage of trading using opposite Kuke Music and Kartoon Studios, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuke Music position performs unexpectedly, Kartoon Studios, 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 Kartoon Studios, will offset losses from the drop in Kartoon Studios,'s long position.

The idea behind Kuke Music Holding and Kartoon Studios, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.