Correlation Between QuhuoLtd and TeamViewer

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

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

Diversification Opportunities for QuhuoLtd and TeamViewer

0.26

Correlation Coefficient

QuhuoLtd  TeamViewer

Modest diversification

The 3 months correlation between QuhuoLtd and TeamViewer is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding QuhuoLtd and TeamViewer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TeamViewer AG 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 TeamViewer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TeamViewer AG has no effect on the direction of QuhuoLtd i.e., QuhuoLtd and TeamViewer go up and down completely randomly.

Pair Corralation between QuhuoLtd and TeamViewer

Allowing for the 90-day total investment horizon QuhuoLtd is expected to under-perform the TeamViewer. In addition to that, QuhuoLtd is 9.98 times more volatile than TeamViewer AG. It trades about -0.12 of its total potential returns per unit of risk. TeamViewer AG is currently generating about -0.16 per unit of volatility. If you would invest  1,560  in TeamViewer AG on January 24, 2024 and sell it today you would lose (90.00) from holding TeamViewer AG or give up 5.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	97.62%
Values	Daily Returns

QuhuoLtd  vs.  TeamViewer AG

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 inconsistent performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in May 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

TeamViewer AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TeamViewer AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, TeamViewer is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with QuhuoLtd and TeamViewer

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

The idea behind QuhuoLtd and TeamViewer AG 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.