Correlation Between Kingsoft Cloud and Transportation Fund
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Transportation Fund 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 Transportation Fund 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 Transportation Fund Class, you can compare the effects of market volatilities on Kingsoft Cloud and Transportation Fund 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 Transportation Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Transportation Fund.
Diversification Opportunities for Kingsoft Cloud and Transportation Fund
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingsoft and Transportation is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Transportation Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transportation Fund Class 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 Transportation Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transportation Fund Class has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Transportation Fund go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Transportation Fund
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 8.76 times more return on investment than Transportation Fund. However, Kingsoft Cloud is 8.76 times more volatile than Transportation Fund Class. It trades about 0.4 of its potential returns per unit of risk. Transportation Fund Class is currently generating about 0.22 per unit of risk. If you would invest 283.00 in Kingsoft Cloud Holdings on August 27, 2024 and sell it today you would earn a total of 438.00 from holding Kingsoft Cloud Holdings or generate 154.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Transportation Fund Class
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Transportation Fund Class |
Kingsoft Cloud and Transportation Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Transportation Fund
The main advantage of trading using opposite Kingsoft Cloud and Transportation Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Transportation Fund 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 Transportation Fund will offset losses from the drop in Transportation Fund'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 |
| Transportation Fund vs. Barnes Group | Transportation Fund vs. Genpact Limited | Transportation Fund vs. Jacobs Solutions | Transportation Fund vs. Ryder System |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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