Correlation Between Trust Stamp and Kingsoft Cloud
Can any of the company-specific risk be diversified away by investing in both Trust Stamp 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 Trust Stamp and Kingsoft Cloud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trust Stamp and Kingsoft Cloud Holdings, you can compare the effects of market volatilities on Trust Stamp 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 Trust Stamp with a short position of Kingsoft Cloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trust Stamp and Kingsoft Cloud.
Diversification Opportunities for Trust Stamp and Kingsoft Cloud
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Trust and Kingsoft is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Trust Stamp 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 Trust Stamp 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 Trust Stamp 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 Trust Stamp i.e., Trust Stamp and Kingsoft Cloud go up and down completely randomly.
Pair Corralation between Trust Stamp and Kingsoft Cloud
Given the investment horizon of 90 days Trust Stamp is expected to generate 1.16 times less return on investment than Kingsoft Cloud. In addition to that, Trust Stamp is 2.26 times more volatile than Kingsoft Cloud Holdings. It trades about 0.1 of its total potential returns per unit of risk. Kingsoft Cloud Holdings is currently generating about 0.27 per unit of volatility. If you would invest 218.00 in Kingsoft Cloud Holdings on September 15, 2024 and sell it today you would earn a total of 698.00 from holding Kingsoft Cloud Holdings or generate 320.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Trust Stamp vs. Kingsoft Cloud Holdings
Performance |
Timeline |
Trust Stamp |
Kingsoft Cloud Holdings |
Trust Stamp and Kingsoft Cloud Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Trust Stamp and Kingsoft Cloud
The main advantage of trading using opposite Trust Stamp and Kingsoft Cloud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trust Stamp 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.Trust Stamp vs. HeartCore Enterprises | Trust Stamp vs. Quhuo | Trust Stamp vs. Infobird Co | Trust Stamp vs. Beamr Imaging Ltd |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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