Correlation Between Kingsoft Cloud and Agora
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Agora 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 Kingsoft Cloud and Agora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingsoft Cloud Holdings and Agora Inc, you can compare the effects of market volatilities on Kingsoft Cloud and Agora 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 Kingsoft Cloud with a short position of Agora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Agora.
Diversification Opportunities for Kingsoft Cloud and Agora
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingsoft and Agora is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Agora Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agora Inc and Kingsoft Cloud 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 Kingsoft Cloud Holdings are associated (or correlated) with Agora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agora Inc has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Agora go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Agora
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 0.95 times more return on investment than Agora. However, Kingsoft Cloud Holdings is 1.05 times less risky than Agora. It trades about 0.29 of its potential returns per unit of risk. Agora Inc is currently generating about 0.22 per unit of risk. If you would invest 1,072 in Kingsoft Cloud Holdings on November 7, 2024 and sell it today you would earn a total of 489.00 from holding Kingsoft Cloud Holdings or generate 45.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Agora Inc
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Agora Inc |
Kingsoft Cloud and Agora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Agora
The main advantage of trading using opposite Kingsoft Cloud and Agora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Agora 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 Agora will offset losses from the drop in Agora's long position.| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |