Correlation Between Quhuo and Borqs Technologies

Can any of the company-specific risk be diversified away by investing in both Quhuo and Borqs 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 Borqs Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Quhuo and Borqs Technologies, you can compare the effects of market volatilities on Quhuo and Borqs 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 Borqs Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quhuo and Borqs Technologies.

Diversification Opportunities for Quhuo and Borqs Technologies

0.23

Correlation Coefficient

Quhuo  Borqs Technologies

Modest diversification

The 3 months correlation between Quhuo and Borqs is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Quhuo and Borqs Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borqs 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 Borqs Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borqs Technologies has no effect on the direction of Quhuo i.e., Quhuo and Borqs Technologies go up and down completely randomly.

Pair Corralation between Quhuo and Borqs Technologies

Allowing for the 90-day total investment horizon Quhuo is expected to generate 2.58 times more return on investment than Borqs Technologies. However, Quhuo is 2.58 times more volatile than Borqs Technologies. It trades about 0.04 of its potential returns per unit of risk. Borqs Technologies is currently generating about -0.01 per unit of risk. If you would invest  147.00  in Quhuo on September 29, 2024 and sell it today you would earn a total of  5.00  from holding Quhuo or generate 3.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	27.42%
Values	Daily Returns

Quhuo  vs.  Borqs Technologies

Quhuo

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Quhuo are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile technical indicators, Quhuo demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Borqs Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Borqs Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Borqs Technologies is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Quhuo and Borqs Technologies

The main advantage of trading using opposite Quhuo and Borqs Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quhuo position performs unexpectedly, Borqs 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 Borqs Technologies will offset losses from the drop in Borqs Technologies' long position.

The idea behind Quhuo and Borqs 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..