Correlation Between Quanergy Systems and DSG Global
Can any of the company-specific risk be diversified away by investing in both Quanergy Systems and DSG Global 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 Quanergy Systems and DSG Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quanergy Systems and DSG Global, you can compare the effects of market volatilities on Quanergy Systems and DSG Global 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 Quanergy Systems with a short position of DSG Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quanergy Systems and DSG Global.
Diversification Opportunities for Quanergy Systems and DSG Global
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Quanergy and DSG is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Quanergy Systems and DSG Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSG Global and Quanergy Systems 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 Quanergy Systems are associated (or correlated) with DSG Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSG Global has no effect on the direction of Quanergy Systems i.e., Quanergy Systems and DSG Global go up and down completely randomly.
Pair Corralation between Quanergy Systems and DSG Global
If you would invest 1.90 in DSG Global on August 25, 2024 and sell it today you would lose (1.89) from holding DSG Global or give up 99.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.34% |
| Values | Daily Returns |
Quanergy Systems vs. DSG Global
Performance |
| Timeline |
| Quanergy Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| DSG Global |
Quanergy Systems and DSG Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quanergy Systems and DSG Global
The main advantage of trading using opposite Quanergy Systems and DSG Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanergy Systems position performs unexpectedly, DSG Global 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 DSG Global will offset losses from the drop in DSG Global's long position.| Quanergy Systems vs. Kinetik Holdings | Quanergy Systems vs. NorthWestern | Quanergy Systems vs. Kenon Holdings | Quanergy Systems vs. Delta Air Lines |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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