Correlation Between Quhuo and ReposiTrak

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

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

Diversification Opportunities for Quhuo and ReposiTrak

-0.33

Correlation Coefficient

Quhuo  ReposiTrak

Very good diversification

The 3 months correlation between Quhuo and ReposiTrak is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Quhuo and ReposiTrak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReposiTrak 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 ReposiTrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReposiTrak has no effect on the direction of Quhuo i.e., Quhuo and ReposiTrak go up and down completely randomly.

Pair Corralation between Quhuo and ReposiTrak

Allowing for the 90-day total investment horizon Quhuo is expected to under-perform the ReposiTrak. In addition to that, Quhuo is 1.06 times more volatile than ReposiTrak. It trades about -0.06 of its total potential returns per unit of risk. ReposiTrak is currently generating about 0.09 per unit of volatility. If you would invest  1,915  in ReposiTrak on October 23, 2024 and sell it today you would earn a total of  228.00  from holding ReposiTrak or generate 11.91% return on investment over 90 days.

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

Quhuo  vs.  ReposiTrak

Quhuo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quhuo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

ReposiTrak

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ReposiTrak are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, ReposiTrak disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Quhuo and ReposiTrak

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

The idea behind Quhuo and ReposiTrak 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.