Correlation Between Kingsoft Cloud and Elcom International
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Elcom International 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 Elcom International 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 Elcom International, you can compare the effects of market volatilities on Kingsoft Cloud and Elcom International 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 Elcom International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Elcom International.
Diversification Opportunities for Kingsoft Cloud and Elcom International
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingsoft and Elcom is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Elcom International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elcom International 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 Elcom International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elcom International has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Elcom International go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Elcom International
If you would invest 287.00 in Kingsoft Cloud Holdings on August 27, 2024 and sell it today you would earn a total of 434.00 from holding Kingsoft Cloud Holdings or generate 151.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Elcom International
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Elcom International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kingsoft Cloud and Elcom International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Elcom International
The main advantage of trading using opposite Kingsoft Cloud and Elcom International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Elcom International 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 Elcom International will offset losses from the drop in Elcom International'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 |
| Elcom International vs. NuGene International | Elcom International vs. Zoom Video Communications | Elcom International vs. Bowmo Inc | Elcom International vs. Epazz Inc |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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