Correlation Between E W and Kuke Music

Can any of the company-specific risk be diversified away by investing in both E W and Kuke Music 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 E W and Kuke Music into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between E W Scripps and Kuke Music Holding, you can compare the effects of market volatilities on E W and Kuke Music 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 E W with a short position of Kuke Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of E W and Kuke Music.

Diversification Opportunities for E W and Kuke Music

0.82

Correlation Coefficient

E W  Kuke Music

Very poor diversification

The 3 months correlation between SSP and Kuke is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding E W Scripps and Kuke Music Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuke Music Holding and E W 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 E W Scripps are associated (or correlated) with Kuke Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuke Music Holding has no effect on the direction of E W i.e., E W and Kuke Music go up and down completely randomly.

Pair Corralation between E W and Kuke Music

Considering the 90-day investment horizon E W Scripps is expected to generate 0.31 times more return on investment than Kuke Music. However, E W Scripps is 3.26 times less risky than Kuke Music. It trades about -0.28 of its potential returns per unit of risk. Kuke Music Holding is currently generating about -0.48 per unit of risk. If you would invest  301.00  in E W Scripps on July 6, 2025 and sell it today you would lose (53.00) from holding E W Scripps or give up 17.61% of portfolio value over 90 days.

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

E W Scripps  vs.  Kuke Music Holding

E W Scripps

Risk-Adjusted Performance

Weakest

Over the last 90 days E W Scripps has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in November 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

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 November 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with E W and Kuke Music

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

The idea behind E W Scripps and Kuke Music Holding 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.