Correlation Between Kingsoft Cloud and Instructure Holdings

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Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Instructure Holdings 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 Instructure Holdings 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 Instructure Holdings, you can compare the effects of market volatilities on Kingsoft Cloud and Instructure Holdings 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 Instructure Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Instructure Holdings.

Diversification Opportunities for Kingsoft Cloud and Instructure Holdings

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Kingsoft and Instructure is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Instructure Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Instructure Holdings 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 Instructure Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Instructure Holdings has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Instructure Holdings go up and down completely randomly.

Pair Corralation between Kingsoft Cloud and Instructure Holdings

If you would invest  997.00  in Kingsoft Cloud Holdings on November 18, 2024 and sell it today you would earn a total of  1,084  from holding Kingsoft Cloud Holdings or generate 108.73% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Kingsoft Cloud Holdings  vs.  Instructure Holdings

 Performance 
       Timeline  
Kingsoft Cloud Holdings 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Kingsoft Cloud Holdings are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Kingsoft Cloud exhibited solid returns over the last few months and may actually be approaching a breakup point.
Instructure Holdings 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Instructure Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Instructure Holdings is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Kingsoft Cloud and Instructure Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kingsoft Cloud and Instructure Holdings

The main advantage of trading using opposite Kingsoft Cloud and Instructure Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Instructure Holdings 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 Instructure Holdings will offset losses from the drop in Instructure Holdings' long position.
The idea behind Kingsoft Cloud Holdings and Instructure Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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