Correlation Between Quhuo and Exela Technologies
Can any of the company-specific risk be diversified away by investing in both Quhuo and Exela Technologies 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 Exela Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quhuo and Exela Technologies, you can compare the effects of market volatilities on Quhuo and Exela Technologies 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 Exela Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quhuo and Exela Technologies.
Diversification Opportunities for Quhuo and Exela Technologies
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quhuo and Exela is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Quhuo and Exela Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exela Technologies 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 Exela Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exela Technologies has no effect on the direction of Quhuo i.e., Quhuo and Exela Technologies go up and down completely randomly.
Pair Corralation between Quhuo and Exela Technologies
Allowing for the 90-day total investment horizon Quhuo is expected to generate 1.94 times more return on investment than Exela Technologies. However, Quhuo is 1.94 times more volatile than Exela Technologies. It trades about 0.04 of its potential returns per unit of risk. Exela Technologies is currently generating about -0.05 per unit of risk. If you would invest 143.00 in Quhuo on August 27, 2024 and sell it today you would lose (8.00) from holding Quhuo or give up 5.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Quhuo vs. Exela Technologies
Performance |
| Timeline |
| Quhuo |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Quhuo and Exela Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quhuo and Exela Technologies
The main advantage of trading using opposite Quhuo and Exela Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quhuo position performs unexpectedly, Exela Technologies 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 Exela Technologies will offset losses from the drop in Exela Technologies' long position.The idea behind Quhuo and Exela Technologies 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.| Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Infobird Co | Exela Technologies vs. Quhuo | Exela Technologies vs. CXApp Inc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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