Correlation Between Kingsoft Cloud and Industrials Portfolio
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Industrials Portfolio 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 Industrials Portfolio 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 Industrials Portfolio Industrials, you can compare the effects of market volatilities on Kingsoft Cloud and Industrials Portfolio 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 Industrials Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Industrials Portfolio.
Diversification Opportunities for Kingsoft Cloud and Industrials Portfolio
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingsoft and Industrials is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Industrials Portfolio Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrials Portfolio 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 Industrials Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrials Portfolio has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Industrials Portfolio go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Industrials Portfolio
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 9.67 times more return on investment than Industrials Portfolio. However, Kingsoft Cloud is 9.67 times more volatile than Industrials Portfolio Industrials. It trades about 0.3 of its potential returns per unit of risk. Industrials Portfolio Industrials is currently generating about 0.24 per unit of risk. If you would invest 283.00 in Kingsoft Cloud Holdings on August 29, 2024 and sell it today you would earn a total of 314.00 from holding Kingsoft Cloud Holdings or generate 110.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Industrials Portfolio Industri
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Industrials Portfolio |
Kingsoft Cloud and Industrials Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Industrials Portfolio
The main advantage of trading using opposite Kingsoft Cloud and Industrials Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Industrials Portfolio 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 Industrials Portfolio will offset losses from the drop in Industrials Portfolio'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 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |