Correlation Between Kingsoft Cloud and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Fidelity Advisor 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 Fidelity Advisor 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 Fidelity Advisor Industrials, you can compare the effects of market volatilities on Kingsoft Cloud and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Fidelity Advisor.
Diversification Opportunities for Kingsoft Cloud and Fidelity Advisor
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingsoft and Fidelity is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Fidelity Advisor Industrials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Ind 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Ind has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Fidelity Advisor
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 7.2 times more return on investment than Fidelity Advisor. However, Kingsoft Cloud is 7.2 times more volatile than Fidelity Advisor Industrials. It trades about 0.15 of its potential returns per unit of risk. Fidelity Advisor Industrials is currently generating about -0.16 per unit of risk. If you would invest 721.00 in Kingsoft Cloud Holdings on October 23, 2024 and sell it today you would earn a total of 276.00 from holding Kingsoft Cloud Holdings or generate 38.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Fidelity Advisor Industrials
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Fidelity Advisor Ind |
Kingsoft Cloud and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Fidelity Advisor
The main advantage of trading using opposite Kingsoft Cloud and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor'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 |
| Fidelity Advisor vs. Forum Real Estate | Fidelity Advisor vs. Deutsche Real Estate | Fidelity Advisor vs. Prudential Real Estate | Fidelity Advisor vs. Simt Real Estate |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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