Correlation Between Kingsoft Cloud and Nextplat Corp
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp, you can compare the effects of market volatilities on Kingsoft Cloud and Nextplat Corp 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 Nextplat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Nextplat Corp.
Diversification Opportunities for Kingsoft Cloud and Nextplat Corp
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kingsoft and Nextplat is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Nextplat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplat Corp 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 Nextplat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextplat Corp has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Nextplat Corp go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Nextplat Corp
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 1.96 times more return on investment than Nextplat Corp. However, Kingsoft Cloud is 1.96 times more volatile than Nextplat Corp. It trades about 0.17 of its potential returns per unit of risk. Nextplat Corp is currently generating about -0.16 per unit of risk. If you would invest 383.00 in Kingsoft Cloud Holdings on September 3, 2024 and sell it today you would earn a total of 286.00 from holding Kingsoft Cloud Holdings or generate 74.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Nextplat Corp
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Nextplat Corp |
Kingsoft Cloud and Nextplat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Nextplat Corp
The main advantage of trading using opposite Kingsoft Cloud and Nextplat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Nextplat Corp 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 Nextplat Corp will offset losses from the drop in Nextplat Corp'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 |
| Nextplat Corp vs. RenoWorks Software | Nextplat Corp vs. LifeSpeak | Nextplat Corp vs. 01 Communique Laboratory | Nextplat Corp vs. Where Food Comes |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |