Correlation Between Quhuo and Zenvia

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

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

Diversification Opportunities for Quhuo and Zenvia

-0.78

Correlation Coefficient

Quhuo  Zenvia

Pay attention - limited upside

The 3 months correlation between Quhuo and Zenvia is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Quhuo and Zenvia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zenvia 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 Zenvia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zenvia Inc has no effect on the direction of Quhuo i.e., Quhuo and Zenvia go up and down completely randomly.

Pair Corralation between Quhuo and Zenvia

Allowing for the 90-day total investment horizon Quhuo is expected to generate 0.38 times more return on investment than Zenvia. However, Quhuo is 2.63 times less risky than Zenvia. It trades about -0.01 of its potential returns per unit of risk. Zenvia Inc is currently generating about -0.03 per unit of risk. If you would invest  151.00  in Quhuo on December 27, 2024 and sell it today you would lose (5.00) from holding Quhuo or give up 3.31% of portfolio value over 90 days.

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

Quhuo  vs.  Zenvia Inc

Quhuo

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quhuo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Quhuo is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Zenvia Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zenvia Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Quhuo and Zenvia

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

The idea behind Quhuo and Zenvia 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.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.