Correlation Between Kingsoft Cloud and Geo
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Geo 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 Geo 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 Geo Group, you can compare the effects of market volatilities on Kingsoft Cloud and Geo 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 Geo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Geo.
Diversification Opportunities for Kingsoft Cloud and Geo
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingsoft and Geo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Geo Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geo Group 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 Geo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geo Group has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Geo go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Geo
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 1.55 times more return on investment than Geo. However, Kingsoft Cloud is 1.55 times more volatile than Geo Group. It trades about 0.16 of its potential returns per unit of risk. Geo Group is currently generating about 0.14 per unit of risk. If you would invest 282.00 in Kingsoft Cloud Holdings on September 13, 2024 and sell it today you would earn a total of 676.00 from holding Kingsoft Cloud Holdings or generate 239.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Geo Group
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Geo Group |
Kingsoft Cloud and Geo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Geo
The main advantage of trading using opposite Kingsoft Cloud and Geo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Geo 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 Geo will offset losses from the drop in Geo'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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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