Correlation Between Domo and Kingsoft Cloud
Can any of the company-specific risk be diversified away by investing in both Domo 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 Domo and Kingsoft Cloud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Domo Inc and Kingsoft Cloud Holdings, you can compare the effects of market volatilities on Domo 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 Domo with a short position of Kingsoft Cloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Domo and Kingsoft Cloud.
Diversification Opportunities for Domo and Kingsoft Cloud
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Domo and Kingsoft is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Domo Inc 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 Domo 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 Domo Inc 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 Domo i.e., Domo and Kingsoft Cloud go up and down completely randomly.
Pair Corralation between Domo and Kingsoft Cloud
Given the investment horizon of 90 days Domo Inc is expected to under-perform the Kingsoft Cloud. But the stock apears to be less risky and, when comparing its historical volatility, Domo Inc is 2.24 times less risky than Kingsoft Cloud. The stock trades about -0.03 of its potential returns per unit of risk. The Kingsoft Cloud Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 264.00 in Kingsoft Cloud Holdings on November 3, 2024 and sell it today you would earn a total of 993.00 from holding Kingsoft Cloud Holdings or generate 376.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Domo Inc vs. Kingsoft Cloud Holdings
Performance |
| Timeline |
| Domo Inc |
| Kingsoft Cloud Holdings |
Domo and Kingsoft Cloud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Domo and Kingsoft Cloud
The main advantage of trading using opposite Domo and Kingsoft Cloud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Domo 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.The idea behind Domo Inc and Kingsoft Cloud 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.| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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