Correlation Between Kingsoft Cloud and Clean Harbors

Can any of the company-specific risk be diversified away by investing in both Kingsoft Cloud and Clean Harbors 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 Clean Harbors 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 Clean Harbors, you can compare the effects of market volatilities on Kingsoft Cloud and Clean Harbors 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 Clean Harbors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsoft Cloud and Clean Harbors.

Diversification Opportunities for Kingsoft Cloud and Clean Harbors

0.06

Correlation Coefficient

Kingsoft Cloud  Clean Harbors

Significant diversification

The 3 months correlation between Kingsoft and Clean is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kingsoft Cloud Holdings and Clean Harbors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Harbors 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 Clean Harbors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Harbors has no effect on the direction of Kingsoft Cloud i.e., Kingsoft Cloud and Clean Harbors go up and down completely randomly.

Pair Corralation between Kingsoft Cloud and Clean Harbors

Allowing for the 90-day total investment horizon Kingsoft Cloud Holdings is expected to under-perform the Clean Harbors. In addition to that, Kingsoft Cloud is 4.9 times more volatile than Clean Harbors. It trades about -0.01 of its total potential returns per unit of risk. Clean Harbors is currently generating about 0.09 per unit of volatility. If you would invest  22,279  in Clean Harbors on May 3, 2025 and sell it today you would earn a total of  1,138  from holding Clean Harbors or generate 5.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kingsoft Cloud Holdings  vs.  Clean Harbors

Kingsoft Cloud Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kingsoft Cloud Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Kingsoft Cloud is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Clean Harbors

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Clean Harbors are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong essential indicators, Clean Harbors is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Kingsoft Cloud and Clean Harbors

The main advantage of trading using opposite Kingsoft Cloud and Clean Harbors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsoft Cloud position performs unexpectedly, Clean Harbors 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 Clean Harbors will offset losses from the drop in Clean Harbors' long position.

The idea behind Kingsoft Cloud Holdings and Clean Harbors pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.