Correlation Between Uber Technologies and Kingsoft Cloud
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Kingsoft Cloud 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 Uber Technologies and Kingsoft Cloud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Kingsoft Cloud Holdings, you can compare the effects of market volatilities on Uber Technologies and Kingsoft Cloud 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 Uber Technologies with a short position of Kingsoft Cloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Kingsoft Cloud.
Diversification Opportunities for Uber Technologies and Kingsoft Cloud
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uber and Kingsoft is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Kingsoft Cloud Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsoft Cloud Holdings and Uber Technologies 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 Uber Technologies are associated (or correlated) with Kingsoft Cloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsoft Cloud Holdings has no effect on the direction of Uber Technologies i.e., Uber Technologies and Kingsoft Cloud go up and down completely randomly.
Pair Corralation between Uber Technologies and Kingsoft Cloud
Given the investment horizon of 90 days Uber Technologies is expected to under-perform the Kingsoft Cloud. But the stock apears to be less risky and, when comparing its historical volatility, Uber Technologies is 4.94 times less risky than Kingsoft Cloud. The stock trades about -0.08 of its potential returns per unit of risk. The Kingsoft Cloud Holdings is currently generating about 0.4 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uber Technologies vs. Kingsoft Cloud Holdings
Performance |
| Timeline |
| Uber Technologies |
| Kingsoft Cloud Holdings |
Uber Technologies and Kingsoft Cloud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Kingsoft Cloud
The main advantage of trading using opposite Uber Technologies and Kingsoft Cloud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Kingsoft Cloud 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 Kingsoft Cloud will offset losses from the drop in Kingsoft Cloud's long position.| Uber Technologies vs. Kingsoft Cloud Holdings | Uber Technologies vs. AMTD Digital | Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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