Correlation Between Kingsoft Cloud and Snowflake
Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Snowflake 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 Snowflake 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 Snowflake, you can compare the effects of market volatilities on Kingsoft Cloud and Snowflake 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 Snowflake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Snowflake.
Diversification Opportunities for Kingsoft Cloud and Snowflake
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingsoft and Snowflake is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Snowflake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snowflake 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 Snowflake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snowflake has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Snowflake go up and down completely randomly.
Pair Corralation between Kingsoft Cloud and Snowflake
Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to generate 2.68 times more return on investment than Snowflake. However, Kingsoft Cloud is 2.68 times more volatile than Snowflake. It trades about 0.22 of its potential returns per unit of risk. Snowflake is currently generating about 0.32 per unit of risk. If you would invest 1,072 in Kingsoft Cloud Holdings on November 2, 2024 and sell it today you would earn a total of 256.00 from holding Kingsoft Cloud Holdings or generate 23.88% 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. Snowflake
Performance |
| Timeline |
| Kingsoft Cloud Holdings |
| Snowflake |
Kingsoft Cloud and Snowflake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsoft Cloud and Snowflake
The main advantage of trading using opposite Kingsoft Cloud and Snowflake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Snowflake 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 Snowflake will offset losses from the drop in Snowflake'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 |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |