Correlation Between Inpixon and QuhuoLtd

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

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

Diversification Opportunities for Inpixon and QuhuoLtd

0.49

Correlation Coefficient

Inpixon  QuhuoLtd

Very weak diversification

The 3 months correlation between Inpixon and QuhuoLtd is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Inpixon and QuhuoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuhuoLtd and Inpixon 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 Inpixon are associated (or correlated) with QuhuoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuhuoLtd has no effect on the direction of Inpixon i.e., Inpixon and QuhuoLtd go up and down completely randomly.

Pair Corralation between Inpixon and QuhuoLtd

If you would invest  5.27  in Inpixon on February 5, 2024 and sell it today you would earn a total of  0.00  from holding Inpixon or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	4.55%
Values	Daily Returns

Inpixon  vs.  QuhuoLtd

Inpixon

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Inpixon has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly inconsistent basic indicators, Inpixon showed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Inpixon and QuhuoLtd

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

The idea behind Inpixon and QuhuoLtd 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.