Correlation Between Kingsoft Cloud and Manhattan Associates
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Manhattan Associates 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 Manhattan Associates 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 Manhattan Associates, you can compare the effects of market volatilities on Kingsoft Cloud and Manhattan Associates 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 Manhattan Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Manhattan Associates.
Diversification Opportunities for Kingsoft Cloud and Manhattan Associates
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kingsoft and Manhattan is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Manhattan Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Associates 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 Manhattan Associates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Associates has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Manhattan Associates go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Manhattan Associates
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 3.34 times more return on investment than Manhattan Associates. However, Kingsoft Cloud is 3.34 times more volatile than Manhattan Associates. It trades about 0.05 of its potential returns per unit of risk. Manhattan Associates is currently generating about 0.1 per unit of risk. If you would invest 335.00 in Kingsoft Cloud Holdings on August 24, 2024 and sell it today you would earn a total of 386.00 from holding Kingsoft Cloud Holdings or generate 115.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Manhattan Associates
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Manhattan Associates |
Kingsoft Cloud and Manhattan Associates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Manhattan Associates
The main advantage of trading using opposite Kingsoft Cloud and Manhattan Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Manhattan Associates 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 Manhattan Associates will offset losses from the drop in Manhattan Associates' long position.| Kingsoft Cloud vs. Manhattan Associates | Kingsoft Cloud vs. Paycom Soft | Kingsoft Cloud vs. Clearwater Analytics Holdings | Kingsoft Cloud vs. Procore Technologies |
| Manhattan Associates vs. Alkami Technology | Manhattan Associates vs. Paycor HCM | Manhattan Associates vs. Procore Technologies | Manhattan Associates vs. Enfusion |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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