Correlation Between Kingsoft Cloud and Concentrix
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Concentrix 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 Concentrix 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 Concentrix, you can compare the effects of market volatilities on Kingsoft Cloud and Concentrix 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 Concentrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Concentrix.
Diversification Opportunities for Kingsoft Cloud and Concentrix
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kingsoft and Concentrix is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Concentrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentrix 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 Concentrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentrix has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Concentrix go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Concentrix
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 2.42 times more return on investment than Concentrix. However, Kingsoft Cloud is 2.42 times more volatile than Concentrix. It trades about 0.05 of its potential returns per unit of risk. Concentrix is currently generating about -0.06 per unit of risk. If you would invest 335.00 in Kingsoft Cloud Holdings on August 24, 2024 and sell it today you would earn a total of 386.00 from holding Kingsoft Cloud Holdings or generate 115.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Concentrix
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Concentrix |
Kingsoft Cloud and Concentrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Concentrix
The main advantage of trading using opposite Kingsoft Cloud and Concentrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Concentrix 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 Concentrix will offset losses from the drop in Concentrix's long position.| Kingsoft Cloud vs. Manhattan Associates | Kingsoft Cloud vs. Paycom Soft | Kingsoft Cloud vs. Clearwater Analytics Holdings | Kingsoft Cloud vs. Procore Technologies |
| Concentrix vs. Genpact Limited | Concentrix vs. ExlService Holdings | Concentrix vs. Science Applications International | Concentrix vs. CLARIVATE PLC |
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 CEOs Directory module to screen CEOs from public companies around the world.
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