Correlation Between Quantum Fuel and China Zenix
Can any of the company-specific risk be diversified away by investing in both Quantum Fuel and China Zenix 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 Quantum Fuel and China Zenix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantum Fuel Systems and China Zenix Auto, you can compare the effects of market volatilities on Quantum Fuel and China Zenix 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 Quantum Fuel with a short position of China Zenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantum Fuel and China Zenix.
Diversification Opportunities for Quantum Fuel and China Zenix
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Quantum and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Fuel Systems and China Zenix Auto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Zenix Auto and Quantum Fuel 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 Quantum Fuel Systems are associated (or correlated) with China Zenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Zenix Auto has no effect on the direction of Quantum Fuel i.e., Quantum Fuel and China Zenix go up and down completely randomly.
Pair Corralation between Quantum Fuel and China Zenix
If you would invest (100.00) in China Zenix Auto on January 25, 2024 and sell it today you would earn a total of 100.00 from holding China Zenix Auto or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quantum Fuel Systems vs. China Zenix Auto
Performance |
| Timeline |
| Quantum Fuel Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Zenix Auto |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Quantum Fuel and China Zenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantum Fuel and China Zenix
The main advantage of trading using opposite Quantum Fuel and China Zenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantum Fuel position performs unexpectedly, China Zenix 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 China Zenix will offset losses from the drop in China Zenix's long position.| Quantum Fuel vs. Morgan Stanley | Quantum Fuel vs. Freedom Bank of | Quantum Fuel vs. Alternative Investment | Quantum Fuel vs. Nasdaq Inc |
| China Zenix vs. Atmos Energy | China Zenix vs. Black Hills | China Zenix vs. EMCOR Group | China Zenix vs. Aris Water Solutions |
Check out your portfolio center.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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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