Correlation Between Kingsoft Cloud and MoneyLion
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and MoneyLion 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 MoneyLion 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 MoneyLion, you can compare the effects of market volatilities on Kingsoft Cloud and MoneyLion 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 MoneyLion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and MoneyLion.
Diversification Opportunities for Kingsoft Cloud and MoneyLion
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingsoft and MoneyLion is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and MoneyLion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyLion 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 MoneyLion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MoneyLion has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and MoneyLion go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and MoneyLion
Allowing for the 90-day total investment horizon Kingsoft Cloud is expected to generate 1.61 times less return on investment than MoneyLion. But when comparing it to its historical volatility, Kingsoft Cloud Holdings is 1.08 times less risky than MoneyLion. It trades about 0.05 of its potential returns per unit of risk. MoneyLion is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,680 in MoneyLion on August 30, 2024 and sell it today you would earn a total of 6,976 from holding MoneyLion or generate 415.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. MoneyLion
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| MoneyLion |
Kingsoft Cloud and MoneyLion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and MoneyLion
The main advantage of trading using opposite Kingsoft Cloud and MoneyLion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, MoneyLion 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 MoneyLion will offset losses from the drop in MoneyLion'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 |
| MoneyLion vs. Porch Group | MoneyLion vs. Nerdy Inc | MoneyLion vs. Wag Group Co | MoneyLion vs. Dave Warrants |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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