Correlation Between QuhuoLtd and Agilysys

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

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

Diversification Opportunities for QuhuoLtd and Agilysys

-0.55

Correlation Coefficient

QuhuoLtd  Agilysys

Excellent diversification

The 3 months correlation between QuhuoLtd and Agilysys is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding QuhuoLtd and Agilysys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilysys and QuhuoLtd 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 QuhuoLtd are associated (or correlated) with Agilysys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilysys has no effect on the direction of QuhuoLtd i.e., QuhuoLtd and Agilysys go up and down completely randomly.

Pair Corralation between QuhuoLtd and Agilysys

Allowing for the 90-day total investment horizon QuhuoLtd is expected to under-perform the Agilysys. But the stock apears to be less risky and, when comparing its historical volatility, QuhuoLtd is 1.16 times less risky than Agilysys. The stock trades about -0.03 of its potential returns per unit of risk. The Agilysys is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  8,305  in Agilysys on March 1, 2024 and sell it today you would earn a total of  1,362  from holding Agilysys or generate 16.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

QuhuoLtd  vs.  Agilysys

QuhuoLtd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QuhuoLtd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in June 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Agilysys

Risk-Adjusted Performance

11 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Agilysys are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Agilysys unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QuhuoLtd and Agilysys

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

The idea behind QuhuoLtd and Agilysys 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..