Correlation Between Jfrog and Quhuo

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

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

Diversification Opportunities for Jfrog and Quhuo

0.5

Correlation Coefficient

Jfrog  Quhuo

Very weak diversification

The 3 months correlation between Jfrog and Quhuo is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jfrog and Quhuo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quhuo and Jfrog 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 Jfrog 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 Jfrog i.e., Jfrog and Quhuo go up and down completely randomly.

Pair Corralation between Jfrog and Quhuo

Given the investment horizon of 90 days Jfrog is expected to generate 17.41 times less return on investment than Quhuo. But when comparing it to its historical volatility, Jfrog is 15.72 times less risky than Quhuo. It trades about 0.12 of its potential returns per unit of risk. Quhuo is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  33.00  in Quhuo on September 2, 2024 and sell it today you would earn a total of  107.00  from holding Quhuo or generate 324.24% return on investment over 90 days.

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

Jfrog  vs.  Quhuo

Jfrog

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jfrog are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jfrog reported solid returns over the last few months and may actually be approaching a breakup point.

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 Jfrog and Quhuo

The main advantage of trading using opposite Jfrog and Quhuo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jfrog 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 Jfrog 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.