Correlation Between Kingsoft Cloud and Mistras
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Mistras 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 Mistras 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 Mistras Group, you can compare the effects of market volatilities on Kingsoft Cloud and Mistras 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 Mistras. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Mistras.
Diversification Opportunities for Kingsoft Cloud and Mistras
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingsoft and Mistras is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Mistras Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mistras Group 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 Mistras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mistras Group has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Mistras go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Mistras
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 4.3 times more return on investment than Mistras. However, Kingsoft Cloud is 4.3 times more volatile than Mistras Group. It trades about 0.22 of its potential returns per unit of risk. Mistras Group is currently generating about 0.44 per unit of risk. If you would invest 1,072 in Kingsoft Cloud Holdings on November 2, 2024 and sell it today you would earn a total of 256.00 from holding Kingsoft Cloud Holdings or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Mistras Group
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Mistras Group |
Kingsoft Cloud and Mistras Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Mistras
The main advantage of trading using opposite Kingsoft Cloud and Mistras positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Mistras 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 Mistras will offset losses from the drop in Mistras' 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 |
| Mistras vs. Espey Mfg Electronics | Mistras vs. Hayward Holdings | Mistras vs. Kimball Electronics | Mistras vs. NeoVolta Warrant |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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