Correlation Between Quhuo and Xinda International
Can any of the company-specific risk be diversified away by investing in both Quhuo and Xinda International 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 Xinda International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quhuo and Xinda International Corp, you can compare the effects of market volatilities on Quhuo and Xinda International 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 Xinda International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quhuo and Xinda International.
Diversification Opportunities for Quhuo and Xinda International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Quhuo and Xinda is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Quhuo and Xinda International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinda International 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 Xinda International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinda International Corp has no effect on the direction of Quhuo i.e., Quhuo and Xinda International go up and down completely randomly.
Pair Corralation between Quhuo and Xinda International
Allowing for the 90-day total investment horizon Quhuo is expected to generate 1.4 times more return on investment than Xinda International. However, Quhuo is 1.4 times more volatile than Xinda International Corp. It trades about 0.04 of its potential returns per unit of risk. Xinda International Corp is currently generating about 0.01 per unit of risk. If you would invest 148.00 in Quhuo on September 3, 2024 and sell it today you would lose (8.00) from holding Quhuo or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Quhuo vs. Xinda International Corp
Performance |
| Timeline |
| Quhuo |
| Xinda International Corp |
Quhuo and Xinda International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quhuo and Xinda International
The main advantage of trading using opposite Quhuo and Xinda International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quhuo position performs unexpectedly, Xinda International 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 Xinda International will offset losses from the drop in Xinda International's long position.| Quhuo vs. Sentage Holdings | Quhuo vs. Lixiang Education Holding | Quhuo vs. Huadi International Group | Quhuo vs. Baosheng Media Group |
| Xinda International vs. HeartCore Enterprises | Xinda International vs. Trust Stamp | Xinda International vs. Quhuo | Xinda International vs. Snowflake |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |