Correlation Between Kingsoft Cloud and Resources Connection
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Resources Connection 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 Resources Connection 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 Resources Connection, you can compare the effects of market volatilities on Kingsoft Cloud and Resources Connection 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 Resources Connection. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Resources Connection.
Diversification Opportunities for Kingsoft Cloud and Resources Connection
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingsoft and Resources is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Resources Connection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resources Connection 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 Resources Connection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resources Connection has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Resources Connection go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Resources Connection
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 4.54 times more return on investment than Resources Connection. However, Kingsoft Cloud is 4.54 times more volatile than Resources Connection. It trades about 0.48 of its potential returns per unit of risk. Resources Connection is currently generating about -0.15 per unit of risk. If you would invest 997.00 in Kingsoft Cloud Holdings on November 18, 2024 and sell it today you would earn a total of 1,084 from holding Kingsoft Cloud Holdings or generate 108.73% 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. Resources Connection
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Resources Connection |
Kingsoft Cloud and Resources Connection Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Resources Connection
The main advantage of trading using opposite Kingsoft Cloud and Resources Connection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Resources Connection 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 Resources Connection will offset losses from the drop in Resources Connection'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 |
| Resources Connection vs. CRA International | Resources Connection vs. Huron Consulting Group | Resources Connection vs. Forrester Research | Resources Connection vs. Exponent |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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