Correlation Between Quhuo and Optiva

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

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

Diversification Opportunities for Quhuo and Optiva

0.0

Correlation Coefficient

Quhuo  Optiva

Pay attention - limited upside

The 3 months correlation between Quhuo and Optiva is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Quhuo and Optiva Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optiva Inc 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 Optiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optiva Inc has no effect on the direction of Quhuo i.e., Quhuo and Optiva go up and down completely randomly.

Pair Corralation between Quhuo and Optiva

If you would invest  35.00  in Quhuo on August 30, 2024 and sell it today you would earn a total of  105.00  from holding Quhuo or generate 300.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Quhuo  vs.  Optiva Inc

Quhuo

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Quhuo are ranked lower than 10 (%) 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.

Optiva Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Optiva Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Optiva is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Quhuo and Optiva

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

The idea behind Quhuo and Optiva Inc 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.