Correlation Between Kingsoft Cloud and Bentley Systems
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Bentley Systems 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 Bentley Systems 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 Bentley Systems, you can compare the effects of market volatilities on Kingsoft Cloud and Bentley Systems 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 Bentley Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Bentley Systems.
Diversification Opportunities for Kingsoft Cloud and Bentley Systems
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingsoft and Bentley is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Bentley Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentley Systems 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 Bentley Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentley Systems has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Bentley Systems go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Bentley Systems
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 6.98 times more return on investment than Bentley Systems. However, Kingsoft Cloud is 6.98 times more volatile than Bentley Systems. It trades about 0.33 of its potential returns per unit of risk. Bentley Systems is currently generating about -0.04 per unit of risk. If you would invest 266.00 in Kingsoft Cloud Holdings on August 24, 2024 and sell it today you would earn a total of 312.00 from holding Kingsoft Cloud Holdings or generate 117.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Bentley Systems
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Bentley Systems |
Kingsoft Cloud and Bentley Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Bentley Systems
The main advantage of trading using opposite Kingsoft Cloud and Bentley Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Bentley Systems 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 Bentley Systems will offset losses from the drop in Bentley Systems' long position.| Kingsoft Cloud vs. Manhattan Associates | Kingsoft Cloud vs. Paycom Soft | Kingsoft Cloud vs. Clearwater Analytics Holdings | Kingsoft Cloud vs. Procore Technologies |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |