Correlation Between Kingsoft Cloud and Euro Tech
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Euro Tech 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 Euro Tech 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 Euro Tech Holdings, you can compare the effects of market volatilities on Kingsoft Cloud and Euro Tech 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 Euro Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Euro Tech.
Diversification Opportunities for Kingsoft Cloud and Euro Tech
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kingsoft and Euro is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Euro Tech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Tech Holdings 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 Euro Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Tech Holdings has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Euro Tech go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Euro Tech
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 7.49 times more return on investment than Euro Tech. However, Kingsoft Cloud is 7.49 times more volatile than Euro Tech Holdings. It trades about 0.35 of its potential returns per unit of risk. Euro Tech Holdings is currently generating about -0.16 per unit of risk. If you would invest 293.00 in Kingsoft Cloud Holdings on August 30, 2024 and sell it today you would earn a total of 408.00 from holding Kingsoft Cloud Holdings or generate 139.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Euro Tech Holdings
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Euro Tech Holdings |
Kingsoft Cloud and Euro Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Euro Tech
The main advantage of trading using opposite Kingsoft Cloud and Euro Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Euro Tech 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 Euro Tech will offset losses from the drop in Euro Tech'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 |
| Euro Tech vs. LiqTech International | Euro Tech vs. TOMI Environmental Solutions | Euro Tech vs. ClearSign Combustion | Euro Tech vs. Vow ASA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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