Correlation Between Quhuo and Grab Holdings
Can any of the company-specific risk be diversified away by investing in both Quhuo and Grab 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 Quhuo and Grab Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quhuo and Grab Holdings, you can compare the effects of market volatilities on Quhuo and Grab 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 Quhuo with a short position of Grab Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quhuo and Grab Holdings.
Diversification Opportunities for Quhuo and Grab Holdings
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Quhuo and Grab is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Quhuo and Grab Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grab Holdings and Quhuo 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 Quhuo are associated (or correlated) with Grab Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grab Holdings has no effect on the direction of Quhuo i.e., Quhuo and Grab Holdings go up and down completely randomly.
Pair Corralation between Quhuo and Grab Holdings
Allowing for the 90-day total investment horizon Quhuo is expected to generate 1.55 times more return on investment than Grab Holdings. However, Quhuo is 1.55 times more volatile than Grab Holdings. It trades about -0.16 of its potential returns per unit of risk. Grab Holdings is currently generating about -0.26 per unit of risk. If you would invest 144.00 in Quhuo on October 20, 2024 and sell it today you would lose (12.00) from holding Quhuo or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quhuo vs. Grab Holdings
Performance |
| Timeline |
| Quhuo |
| Grab Holdings |
Quhuo and Grab Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quhuo and Grab Holdings
The main advantage of trading using opposite Quhuo and Grab Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quhuo position performs unexpectedly, Grab 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 Grab Holdings will offset losses from the drop in Grab Holdings' long position.| Quhuo vs. Sentage Holdings | Quhuo vs. Lixiang Education Holding | Quhuo vs. Huadi International Group | Quhuo vs. Baosheng Media Group |
| Grab Holdings vs. LYFT Inc | Grab Holdings vs. Kingsoft Cloud Holdings | Grab Holdings vs. AMTD Digital | Grab Holdings vs. Uber Technologies |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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