Correlation Between Kuke Music and MoneyHero Limited

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

Diversification Opportunities for Kuke Music and MoneyHero Limited

0.08

Correlation Coefficient

Kuke Music  MoneyHero Limited

Significant diversification

The 3 months correlation between Kuke and MoneyHero is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kuke Music Holding and MoneyHero Limited Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyHero Limited Class 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 MoneyHero Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MoneyHero Limited Class has no effect on the direction of Kuke Music i.e., Kuke Music and MoneyHero Limited go up and down completely randomly.

Pair Corralation between Kuke Music and MoneyHero Limited

Given the investment horizon of 90 days Kuke Music Holding is expected to generate 5.85 times more return on investment than MoneyHero Limited. However, Kuke Music is 5.85 times more volatile than MoneyHero Limited Class. It trades about 0.06 of its potential returns per unit of risk. MoneyHero Limited Class is currently generating about 0.06 per unit of risk. If you would invest  266.00  in Kuke Music Holding on October 6, 2025 and sell it today you would lose (261.50) from holding Kuke Music Holding or give up 98.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	97.12%
Values	Daily Returns

Kuke Music Holding  vs.  MoneyHero Limited Class

Kuke Music Holding

Risk-Adjusted Performance

Good

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 rather abnormal forward-looking signals, Kuke Music exhibited solid returns over the last few months and may actually be approaching a breakup point.

MoneyHero Limited Class

Risk-Adjusted Performance

Weakest

Over the last 90 days MoneyHero Limited Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, MoneyHero Limited is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kuke Music and MoneyHero Limited

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

The idea behind Kuke Music Holding and MoneyHero Limited Class 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.