Correlation Between Kingsoft Cloud and Innovative Industrial
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Innovative Industrial 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 Innovative Industrial 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 Innovative Industrial Properties, you can compare the effects of market volatilities on Kingsoft Cloud and Innovative Industrial 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 Innovative Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Innovative Industrial.
Diversification Opportunities for Kingsoft Cloud and Innovative Industrial
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingsoft and Innovative is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Innovative Industrial Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Industrial 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 Innovative Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Industrial has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Innovative Industrial go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Innovative Industrial
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 6.41 times more return on investment than Innovative Industrial. However, Kingsoft Cloud is 6.41 times more volatile than Innovative Industrial Properties. It trades about 0.12 of its potential returns per unit of risk. Innovative Industrial Properties is currently generating about -0.21 per unit of risk. If you would invest 902.00 in Kingsoft Cloud Holdings on October 11, 2024 and sell it today you would earn a total of 136.00 from holding Kingsoft Cloud Holdings or generate 15.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Innovative Industrial Properti
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Innovative Industrial |
Kingsoft Cloud and Innovative Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Innovative Industrial
The main advantage of trading using opposite Kingsoft Cloud and Innovative Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Innovative Industrial 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 Innovative Industrial will offset losses from the drop in Innovative Industrial'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 |
| Innovative Industrial vs. SEI Investments | Innovative Industrial vs. Marine Products | Innovative Industrial vs. Nasdaq Inc | Innovative Industrial vs. United Parks Resorts |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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