Correlation Between NCino and Ke Holdings

Can any of the company-specific risk be diversified away by investing in both NCino and Ke Holdings 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 NCino and Ke Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between nCino Inc and Ke Holdings, you can compare the effects of market volatilities on NCino and Ke Holdings 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 NCino with a short position of Ke Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NCino and Ke Holdings.

Diversification Opportunities for NCino and Ke Holdings

-0.76

Correlation Coefficient

NCino  Ke Holdings

Pay attention - limited upside

The 3 months correlation between NCino and BEKE is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding nCino Inc and Ke Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ke Holdings and NCino 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 nCino Inc are associated (or correlated) with Ke Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ke Holdings has no effect on the direction of NCino i.e., NCino and Ke Holdings go up and down completely randomly.

Pair Corralation between NCino and Ke Holdings

Given the investment horizon of 90 days nCino Inc is expected to under-perform the Ke Holdings. But the stock apears to be less risky and, when comparing its historical volatility, nCino Inc is 1.91 times less risky than Ke Holdings. The stock trades about -0.12 of its potential returns per unit of risk. The Ke Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,849  in Ke Holdings on December 27, 2024 and sell it today you would earn a total of  189.00  from holding Ke Holdings or generate 10.22% return on investment over 90 days.

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

nCino Inc  vs.  Ke Holdings

nCino Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days nCino Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Ke Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ke Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent forward-looking signals, Ke Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NCino and Ke Holdings

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

The idea behind nCino Inc and Ke Holdings 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.

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 Global Correlations module to find global opportunities by holding instruments from different markets.