Correlation Between Kingsoft Cloud and Odyssey Marine
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Odyssey Marine 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 Odyssey Marine 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 Odyssey Marine Exploration, you can compare the effects of market volatilities on Kingsoft Cloud and Odyssey Marine 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 Odyssey Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Odyssey Marine.
Diversification Opportunities for Kingsoft Cloud and Odyssey Marine
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingsoft and Odyssey is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Odyssey Marine Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Marine Explo 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 Odyssey Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssey Marine Explo has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Odyssey Marine go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Odyssey Marine
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 3.46 times more return on investment than Odyssey Marine. However, Kingsoft Cloud is 3.46 times more volatile than Odyssey Marine Exploration. It trades about 0.28 of its potential returns per unit of risk. Odyssey Marine Exploration is currently generating about -0.32 per unit of risk. If you would invest 293.00 in Kingsoft Cloud Holdings on August 30, 2024 and sell it today you would earn a total of 304.00 from holding Kingsoft Cloud Holdings or generate 103.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Odyssey Marine Exploration
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Odyssey Marine Explo |
Kingsoft Cloud and Odyssey Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Odyssey Marine
The main advantage of trading using opposite Kingsoft Cloud and Odyssey Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Odyssey Marine 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 Odyssey Marine will offset losses from the drop in Odyssey Marine'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 |
| Odyssey Marine vs. First Advantage Corp | Odyssey Marine vs. Discount Print USA | Odyssey Marine vs. Cass Information Systems | Odyssey Marine vs. Civeo Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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