Correlation Between Workday and Kingsoft Cloud
Can any of the company-specific risk be diversified away by investing in both Workday 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 Workday and Kingsoft Cloud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workday and Kingsoft Cloud Holdings, you can compare the effects of market volatilities on Workday 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 Workday with a short position of Kingsoft Cloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workday and Kingsoft Cloud.
Diversification Opportunities for Workday and Kingsoft Cloud
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Workday and Kingsoft is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Workday 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 Workday 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 Workday 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 Workday i.e., Workday and Kingsoft Cloud go up and down completely randomly.
Pair Corralation between Workday and Kingsoft Cloud
Given the investment horizon of 90 days Workday is expected to generate 8.3 times less return on investment than Kingsoft Cloud. But when comparing it to its historical volatility, Workday is 6.65 times less risky than Kingsoft Cloud. It trades about 0.32 of its potential returns per unit of risk. 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workday vs. Kingsoft Cloud Holdings
Performance |
| Timeline |
| Workday |
| Kingsoft Cloud Holdings |
Workday and Kingsoft Cloud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workday and Kingsoft Cloud
The main advantage of trading using opposite Workday and Kingsoft Cloud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workday 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.| Workday vs. Intuit Inc | Workday vs. Zoom Video Communications | Workday vs. ServiceNow | Workday 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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