Correlation Between Kingsoft Cloud and Domo

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Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Domo 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 Domo 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 Domo Inc, you can compare the effects of market volatilities on Kingsoft Cloud and Domo 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 Domo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Domo.

Diversification Opportunities for Kingsoft Cloud and Domo

-0.08
  Correlation Coefficient

Good diversification

The 3 months correlation between Kingsoft and Domo is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Domo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Domo 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 Domo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Domo Inc has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Domo go up and down completely randomly.

Pair Corralation between Kingsoft Cloud and Domo

Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 3.34 times more return on investment than Domo. However, Kingsoft Cloud is 3.34 times more volatile than Domo Inc. It trades about 0.48 of its potential returns per unit of risk. Domo Inc is currently generating about 0.45 per unit of risk. If you would invest  997.00  in Kingsoft Cloud Holdings on November 18, 2024 and sell it today you would earn a total of  1,084  from holding Kingsoft Cloud Holdings or generate 108.73% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Kingsoft Cloud Holdings  vs.  Domo Inc

 Performance 
       Timeline  
Kingsoft Cloud Holdings 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Kingsoft Cloud Holdings are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Kingsoft Cloud exhibited solid returns over the last few months and may actually be approaching a breakup point.
Domo Inc 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Domo Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain primary indicators, Domo may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Kingsoft Cloud and Domo Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kingsoft Cloud and Domo

The main advantage of trading using opposite Kingsoft Cloud and Domo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Domo 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 Domo will offset losses from the drop in Domo's long position.
The idea behind Kingsoft Cloud Holdings and Domo Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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