Correlation Between Kingsoft Cloud and Latch
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Latch 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 Latch 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 Latch Inc, you can compare the effects of market volatilities on Kingsoft Cloud and Latch 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 Latch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Latch.
Diversification Opportunities for Kingsoft Cloud and Latch
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kingsoft and Latch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Latch Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Latch Inc 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 Latch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Latch Inc has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Latch go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Latch
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 Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Latch Inc
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Latch Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Kingsoft Cloud and Latch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Latch
The main advantage of trading using opposite Kingsoft Cloud and Latch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Latch 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 Latch will offset losses from the drop in Latch'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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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