Correlation Between Kingsoft Cloud and Sharing Economy
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Sharing Economy 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 Sharing Economy 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 Sharing Economy International, you can compare the effects of market volatilities on Kingsoft Cloud and Sharing Economy 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 Sharing Economy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Sharing Economy.
Diversification Opportunities for Kingsoft Cloud and Sharing Economy
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingsoft and Sharing is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Sharing Economy International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharing Economy Inte 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 Sharing Economy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharing Economy Inte has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Sharing Economy go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Sharing Economy
If you would invest 416.00 in Kingsoft Cloud Holdings on September 2, 2024 and sell it today you would earn a total of 253.00 from holding Kingsoft Cloud Holdings or generate 60.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Kingsoft Cloud Holdings vs. Sharing Economy International
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Sharing Economy Inte |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kingsoft Cloud and Sharing Economy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Sharing Economy
The main advantage of trading using opposite Kingsoft Cloud and Sharing Economy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Sharing Economy 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 Sharing Economy will offset losses from the drop in Sharing Economy'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 |
| Sharing Economy vs. Fuse Science | Sharing Economy vs. Data443 Risk Mitigation | Sharing Economy vs. Smartmetric | Sharing Economy vs. Taoping |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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