Correlation Between Quhuo and Beamr Imaging

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

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

Diversification Opportunities for Quhuo and Beamr Imaging

-0.1

Correlation Coefficient

Quhuo  Beamr Imaging

Good diversification

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

Pair Corralation between Quhuo and Beamr Imaging

Allowing for the 90-day total investment horizon Quhuo is expected to generate 8.97 times more return on investment than Beamr Imaging. However, Quhuo is 8.97 times more volatile than Beamr Imaging Ltd. It trades about 0.13 of its potential returns per unit of risk. Beamr Imaging Ltd is currently generating about -0.03 per unit of risk. 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

Quhuo  vs.  Beamr Imaging Ltd

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.

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.

Pair Trading with Quhuo and Beamr Imaging

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

The idea behind Quhuo and Beamr Imaging Ltd 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.