Correlation Between Quhuo and NextPlat Corp
Can any of the company-specific risk be diversified away by investing in both Quhuo and NextPlat Corp 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 NextPlat Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quhuo and NextPlat Corp, you can compare the effects of market volatilities on Quhuo and NextPlat Corp 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 NextPlat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quhuo and NextPlat Corp.
Diversification Opportunities for Quhuo and NextPlat Corp
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quhuo and NextPlat is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Quhuo and NextPlat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextPlat Corp 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 NextPlat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextPlat Corp has no effect on the direction of Quhuo i.e., Quhuo and NextPlat Corp go up and down completely randomly.
Pair Corralation between Quhuo and NextPlat Corp
Allowing for the 90-day total investment horizon Quhuo is expected to under-perform the NextPlat Corp. But the stock apears to be less risky and, when comparing its historical volatility, Quhuo is 11.36 times less risky than NextPlat Corp. The stock trades about -0.17 of its potential returns per unit of risk. The NextPlat Corp is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 9.90 in NextPlat Corp on October 30, 2024 and sell it today you would earn a total of 7.10 from holding NextPlat Corp or generate 71.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quhuo vs. NextPlat Corp
Performance |
| Timeline |
| Quhuo |
| NextPlat Corp |
Quhuo and NextPlat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quhuo and NextPlat Corp
The main advantage of trading using opposite Quhuo and NextPlat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quhuo position performs unexpectedly, NextPlat Corp 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 NextPlat Corp will offset losses from the drop in NextPlat Corp's long position.| Quhuo vs. Sentage Holdings | Quhuo vs. Lixiang Education Holding | Quhuo vs. Huadi International Group | Quhuo vs. Baosheng Media Group |
| NextPlat Corp vs. Infobird Co | NextPlat Corp vs. HeartCore Enterprises | NextPlat Corp vs. CXApp Inc | NextPlat Corp vs. Quhuo |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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