Correlation Between Coherent and Quanergy Systems
Can any of the company-specific risk be diversified away by investing in both Coherent and Quanergy Systems 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 Coherent and Quanergy Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coherent and Quanergy Systems, you can compare the effects of market volatilities on Coherent and Quanergy Systems 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 Coherent with a short position of Quanergy Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coherent and Quanergy Systems.
Diversification Opportunities for Coherent and Quanergy Systems
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coherent and Quanergy is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Coherent and Quanergy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanergy Systems and Coherent 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 Coherent are associated (or correlated) with Quanergy Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanergy Systems has no effect on the direction of Coherent i.e., Coherent and Quanergy Systems go up and down completely randomly.
Pair Corralation between Coherent and Quanergy Systems
If you would invest 5,061 in Coherent on August 28, 2024 and sell it today you would earn a total of 4,919 from holding Coherent or generate 97.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.28% |
| Values | Daily Returns |
Coherent vs. Quanergy Systems
Performance |
| Timeline |
| Coherent |
| Quanergy Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coherent and Quanergy Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coherent and Quanergy Systems
The main advantage of trading using opposite Coherent and Quanergy Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coherent position performs unexpectedly, Quanergy Systems 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 Quanergy Systems will offset losses from the drop in Quanergy Systems' long position.| Coherent vs. MKS Instruments | Coherent vs. IPG Photonics | Coherent vs. Cognex | Coherent vs. Lumentum Holdings |
| Quanergy Systems vs. Weyco Group | Quanergy Systems vs. Getty Images Holdings | Quanergy Systems vs. Skechers USA | Quanergy Systems vs. Eastern Co |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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