Correlation Between Kingsoft Cloud and SpringBig Holdings
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and SpringBig Holdings 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 SpringBig Holdings 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 SpringBig Holdings, you can compare the effects of market volatilities on Kingsoft Cloud and SpringBig Holdings 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 SpringBig Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and SpringBig Holdings.
Diversification Opportunities for Kingsoft Cloud and SpringBig Holdings
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kingsoft and SpringBig is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and SpringBig Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpringBig Holdings 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 SpringBig Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpringBig Holdings has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and SpringBig Holdings go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and SpringBig Holdings
If you would invest 292.00 in Kingsoft Cloud Holdings on August 25, 2024 and sell it today you would earn a total of 429.00 from holding Kingsoft Cloud Holdings or generate 146.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. SpringBig Holdings
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kingsoft Cloud and SpringBig Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and SpringBig Holdings
The main advantage of trading using opposite Kingsoft Cloud and SpringBig Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, SpringBig Holdings 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 SpringBig Holdings will offset losses from the drop in SpringBig Holdings' 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 |
| SpringBig Holdings vs. Dave Warrants | SpringBig Holdings vs. SoundHound AI | SpringBig Holdings vs. Swvl Holdings Corp | SpringBig Holdings vs. WM Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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