Correlation Between Quhuo and My Size
Can any of the company-specific risk be diversified away by investing in both Quhuo and My Size 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 My Size into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quhuo and My Size, you can compare the effects of market volatilities on Quhuo and My Size 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 My Size. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quhuo and My Size.
Diversification Opportunities for Quhuo and My Size
Excellent diversification
The 3 months correlation between Quhuo and MYSZ is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Quhuo and My Size in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Size 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 My Size. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Size has no effect on the direction of Quhuo i.e., Quhuo and My Size go up and down completely randomly.
Pair Corralation between Quhuo and My Size
Allowing for the 90-day total investment horizon Quhuo is expected to generate 4.64 times more return on investment than My Size. However, Quhuo is 4.64 times more volatile than My Size. It trades about 0.08 of its potential returns per unit of risk. My Size is currently generating about -0.08 per unit of risk. If you would invest 55.00 in Quhuo on August 28, 2024 and sell it today you would earn a total of 79.00 from holding Quhuo or generate 143.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quhuo vs. My Size
Performance |
| Timeline |
| Quhuo |
| My Size |
Quhuo and My Size Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quhuo and My Size
The main advantage of trading using opposite Quhuo and My Size positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quhuo position performs unexpectedly, My Size 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 My Size will offset losses from the drop in My Size's long position.The idea behind Quhuo and My Size 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.| My Size vs. Oneconnect Financial Technology | My Size vs. Trust Stamp | My Size vs. Amesite Operating Co | My Size vs. Infobird 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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