Correlation Between Kuke Music and Alphatec Holdings

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

Diversification Opportunities for Kuke Music and Alphatec Holdings

0.23

Correlation Coefficient

Kuke Music  Alphatec Holdings

Modest diversification

The 3 months correlation between Kuke and Alphatec is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kuke Music Holding and Alphatec Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphatec Holdings 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 Alphatec Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphatec Holdings has no effect on the direction of Kuke Music i.e., Kuke Music and Alphatec Holdings go up and down completely randomly.

Pair Corralation between Kuke Music and Alphatec Holdings

Given the investment horizon of 90 days Kuke Music Holding is expected to under-perform the Alphatec Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Kuke Music Holding is 1.56 times less risky than Alphatec Holdings. The stock trades about -0.35 of its potential returns per unit of risk. The Alphatec Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,221  in Alphatec Holdings on May 9, 2025 and sell it today you would earn a total of  299.00  from holding Alphatec Holdings or generate 24.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Kuke Music Holding  vs.  Alphatec Holdings

Kuke Music Holding

Risk-Adjusted Performance

Weakest

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 weak performance in the last few months, the Stock's forward-looking signals remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Alphatec Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Alphatec Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Alphatec Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kuke Music and Alphatec Holdings

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

The idea behind Kuke Music Holding and Alphatec Holdings 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.