Correlation Between Luokung Technology and Quhuo
Can any of the company-specific risk be diversified away by investing in both Luokung Technology and Quhuo 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 Luokung Technology and Quhuo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luokung Technology Corp and Quhuo, you can compare the effects of market volatilities on Luokung Technology and Quhuo 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 Luokung Technology with a short position of Quhuo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luokung Technology and Quhuo.
Diversification Opportunities for Luokung Technology and Quhuo
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Luokung and Quhuo is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Luokung Technology Corp and Quhuo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quhuo and Luokung Technology 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 Luokung Technology Corp are associated (or correlated) with Quhuo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quhuo has no effect on the direction of Luokung Technology i.e., Luokung Technology and Quhuo go up and down completely randomly.
Pair Corralation between Luokung Technology and Quhuo
Given the investment horizon of 90 days Luokung Technology Corp is expected to under-perform the Quhuo. But the stock apears to be less risky and, when comparing its historical volatility, Luokung Technology Corp is 3.11 times less risky than Quhuo. The stock trades about -0.04 of its potential returns per unit of risk. The Quhuo is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 122.00 in Quhuo on September 14, 2024 and sell it today you would earn a total of 19.00 from holding Quhuo or generate 15.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luokung Technology Corp vs. Quhuo
Performance |
| Timeline |
| Luokung Technology Corp |
| Quhuo |
Luokung Technology and Quhuo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luokung Technology and Quhuo
The main advantage of trading using opposite Luokung Technology and Quhuo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luokung Technology position performs unexpectedly, Quhuo 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 Quhuo will offset losses from the drop in Quhuo's long position.| Luokung Technology vs. Auddia Inc | Luokung Technology vs. Freight Technologies | Luokung Technology vs. CXApp Inc | Luokung Technology vs. Trust Stamp |
| Quhuo vs. Sentage Holdings | Quhuo vs. Lixiang Education Holding | Quhuo vs. Huadi International Group | Quhuo vs. Baosheng Media Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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