Correlation Between Kingsoft Cloud and Republic Services
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Republic Services 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 Republic Services 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 Republic Services, you can compare the effects of market volatilities on Kingsoft Cloud and Republic Services 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 Republic Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Republic Services.
Diversification Opportunities for Kingsoft Cloud and Republic Services
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingsoft and Republic is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Republic Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Republic Services 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 Republic Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Republic Services has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Republic Services go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Republic Services
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 14.91 times more return on investment than Republic Services. However, Kingsoft Cloud is 14.91 times more volatile than Republic Services. It trades about 0.36 of its potential returns per unit of risk. Republic Services is currently generating about 0.45 per unit of risk. If you would invest 286.00 in Kingsoft Cloud Holdings on August 31, 2024 and sell it today you would earn a total of 415.00 from holding Kingsoft Cloud Holdings or generate 145.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Republic Services
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Republic Services |
Kingsoft Cloud and Republic Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Republic Services
The main advantage of trading using opposite Kingsoft Cloud and Republic Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Republic Services 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 Republic Services will offset losses from the drop in Republic Services' 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 |
| Republic Services vs. Casella Waste Systems | Republic Services vs. Clean Harbors | Republic Services vs. Gfl Environmental Holdings | Republic Services vs. Waste Management |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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