Correlation Between QuantumSi and Shenzhen Investment

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

By analyzing existing cross correlation between QuantumSi and Shenzhen Investment Holdings, you can compare the effects of market volatilities on QuantumSi and Shenzhen Investment 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 QuantumSi with a short position of Shenzhen Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of QuantumSi and Shenzhen Investment.

Diversification Opportunities for QuantumSi and Shenzhen Investment

0.0

Correlation Coefficient

QuantumSi  Shenzhen Investment

Pay attention - limited upside

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

Pair Corralation between QuantumSi and Shenzhen Investment

If you would invest  131.00  in QuantumSi on December 23, 2024 and sell it today you would earn a total of  15.00  from holding QuantumSi or generate 11.45% return on investment over 90 days.

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

QuantumSi  vs.  Shenzhen Investment Holdings

QuantumSi

Risk-Adjusted Performance

Modest

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

Shenzhen Investment

Risk-Adjusted Performance

Very Weak

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

Pair Trading with QuantumSi and Shenzhen Investment

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

The idea behind QuantumSi and Shenzhen Investment Holdings 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.