Correlation Between Xiabuxiabu Catering and Quanergy Systems

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

By analyzing existing cross correlation between Xiabuxiabu Catering Management and Quanergy Systems, you can compare the effects of market volatilities on Xiabuxiabu Catering and Quanergy Systems 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 Xiabuxiabu Catering with a short position of Quanergy Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiabuxiabu Catering and Quanergy Systems.

Diversification Opportunities for Xiabuxiabu Catering and Quanergy Systems

0.0

Correlation Coefficient

Xiabuxiabu Catering  Quanergy Systems

Pay attention - limited upside

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

Pair Corralation between Xiabuxiabu Catering and Quanergy Systems

If you would invest (100.00) in Quanergy Systems on December 31, 2024 and sell it today you would earn a total of  100.00  from holding Quanergy Systems or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Xiabuxiabu Catering Management  vs.  Quanergy Systems

Xiabuxiabu Catering

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xiabuxiabu Catering Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Quanergy Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quanergy Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Quanergy Systems is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Xiabuxiabu Catering and Quanergy Systems

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

The idea behind Xiabuxiabu Catering Management and Quanergy Systems 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.