Correlation Between Kingsoft Cloud and GSE Systems
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and GSE Systems 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 GSE Systems 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 GSE Systems, you can compare the effects of market volatilities on Kingsoft Cloud and GSE Systems 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 GSE Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and GSE Systems.
Diversification Opportunities for Kingsoft Cloud and GSE Systems
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingsoft and GSE is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and GSE Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSE Systems 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 GSE Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSE Systems has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and GSE Systems go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and GSE Systems
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 0.84 times more return on investment than GSE Systems. However, Kingsoft Cloud Holdings is 1.2 times less risky than GSE Systems. It trades about 0.04 of its potential returns per unit of risk. GSE Systems is currently generating about 0.01 per unit of risk. If you would invest 483.00 in Kingsoft Cloud Holdings on September 1, 2024 and sell it today you would earn a total of 186.00 from holding Kingsoft Cloud Holdings or generate 38.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.82% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. GSE Systems
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| GSE Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Kingsoft Cloud and GSE Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and GSE Systems
The main advantage of trading using opposite Kingsoft Cloud and GSE Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, GSE Systems 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 GSE Systems will offset losses from the drop in GSE Systems' 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 |
| GSE Systems vs. LifeSpeak | GSE Systems vs. RenoWorks Software | GSE Systems vs. 01 Communique Laboratory | GSE Systems vs. RESAAS Services |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |