Correlation Between Kingsoft Cloud and Blend Labs
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Blend Labs 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 Blend Labs 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 Blend Labs, you can compare the effects of market volatilities on Kingsoft Cloud and Blend Labs 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 Blend Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Blend Labs.
Diversification Opportunities for Kingsoft Cloud and Blend Labs
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingsoft and Blend is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Blend Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blend Labs 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 Blend Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blend Labs has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Blend Labs go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Blend Labs
Allowing for the 90-day total investment horizon Kingsoft Cloud is expected to generate 2.63 times less return on investment than Blend Labs. In addition to that, Kingsoft Cloud is 1.08 times more volatile than Blend Labs. It trades about 0.04 of its total potential returns per unit of risk. Blend Labs is currently generating about 0.11 per unit of volatility. If you would invest 78.00 in Blend Labs on August 31, 2024 and sell it today you would earn a total of 441.00 from holding Blend Labs or generate 565.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Blend Labs
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Blend Labs |
Kingsoft Cloud and Blend Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Blend Labs
The main advantage of trading using opposite Kingsoft Cloud and Blend Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Blend Labs 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 Blend Labs will offset losses from the drop in Blend Labs' 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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