Correlation Between Bm Technologies and Kingsoft Cloud
Can any of the company-specific risk be diversified away by investing in both Bm Technologies and Kingsoft Cloud 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 Bm Technologies and Kingsoft Cloud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bm Technologies and Kingsoft Cloud Holdings, you can compare the effects of market volatilities on Bm Technologies and Kingsoft Cloud 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 Bm Technologies with a short position of Kingsoft Cloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bm Technologies and Kingsoft Cloud.
Diversification Opportunities for Bm Technologies and Kingsoft Cloud
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BMTX and Kingsoft is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bm Technologies and Kingsoft Cloud Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsoft Cloud Holdings and Bm Technologies 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 Bm Technologies are associated (or correlated) with Kingsoft Cloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsoft Cloud Holdings has no effect on the direction of Bm Technologies i.e., Bm Technologies and Kingsoft Cloud go up and down completely randomly.
Pair Corralation between Bm Technologies and Kingsoft Cloud
Given the investment horizon of 90 days Bm Technologies is expected to generate 105.59 times less return on investment than Kingsoft Cloud. But when comparing it to its historical volatility, Bm Technologies is 53.4 times less risky than Kingsoft Cloud. It trades about 0.24 of its potential returns per unit of risk. Kingsoft Cloud Holdings is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 997.00 in Kingsoft Cloud Holdings on November 18, 2024 and sell it today you would earn a total of 1,084 from holding Kingsoft Cloud Holdings or generate 108.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 52.38% |
| Values | Daily Returns |
Bm Technologies vs. Kingsoft Cloud Holdings
Performance |
| Timeline |
| Bm Technologies |
Risk-Adjusted Performance
Good
Weak | Strong |
| Kingsoft Cloud Holdings |
Bm Technologies and Kingsoft Cloud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bm Technologies and Kingsoft Cloud
The main advantage of trading using opposite Bm Technologies and Kingsoft Cloud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bm Technologies position performs unexpectedly, Kingsoft Cloud 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 Kingsoft Cloud will offset losses from the drop in Kingsoft Cloud's long position.| Bm Technologies vs. Where Food Comes | Bm Technologies vs. eGain | Bm Technologies vs. Research Solutions | Bm Technologies vs. Infobird Co |
| Kingsoft Cloud vs. Oneconnect Financial Technology | Kingsoft Cloud vs. Global Business Travel | Kingsoft Cloud vs. Alight Inc | Kingsoft Cloud vs. CS Disco LLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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