Correlation Between Beamr Imaging and Quhuo

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

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

Diversification Opportunities for Beamr Imaging and Quhuo

-0.1

Correlation Coefficient

Beamr Imaging  Quhuo

Good diversification

The 3 months correlation between Beamr and Quhuo is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Beamr Imaging Ltd and Quhuo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quhuo and Beamr Imaging 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 Beamr Imaging Ltd are associated (or correlated) with Quhuo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quhuo has no effect on the direction of Beamr Imaging i.e., Beamr Imaging and Quhuo go up and down completely randomly.

Pair Corralation between Beamr Imaging and Quhuo

Considering the 90-day investment horizon Beamr Imaging Ltd is expected to under-perform the Quhuo. But the stock apears to be less risky and, when comparing its historical volatility, Beamr Imaging Ltd is 8.97 times less risky than Quhuo. The stock trades about -0.03 of its potential returns per unit of risk. The Quhuo is currently generating about 0.13 of returns per unit of risk over similar time horizon. 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	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Beamr Imaging Ltd  vs.  Quhuo

Beamr Imaging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Beamr Imaging Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's primary indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

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.

Pair Trading with Beamr Imaging and Quhuo

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

The idea behind Beamr Imaging Ltd and Quhuo 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 Stocks Directory module to find actively traded stocks across global markets.