Correlation Between Kingsoft Cloud and Quest Resource
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Quest Resource 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 Quest Resource 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 Quest Resource Holding, you can compare the effects of market volatilities on Kingsoft Cloud and Quest Resource 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 Quest Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Quest Resource.
Diversification Opportunities for Kingsoft Cloud and Quest Resource
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kingsoft and Quest is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Quest Resource Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quest Resource Holding 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 Quest Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quest Resource Holding has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Quest Resource go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Quest Resource
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 4.33 times more return on investment than Quest Resource. However, Kingsoft Cloud is 4.33 times more volatile than Quest Resource Holding. It trades about 0.35 of its potential returns per unit of risk. Quest Resource Holding is currently generating about -0.12 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 408.00 from holding Kingsoft Cloud Holdings or generate 139.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Quest Resource Holding
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Quest Resource Holding |
Kingsoft Cloud and Quest Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Quest Resource
The main advantage of trading using opposite Kingsoft Cloud and Quest Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Quest Resource 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 Quest Resource will offset losses from the drop in Quest Resource'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 |
| Quest Resource vs. Casella Waste Systems | Quest Resource vs. Montrose Environmental Grp | Quest Resource vs. Clean Harbors | Quest Resource vs. Waste Connections |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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