Correlation Between Quanergy Systems and Mind Technology

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

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

Diversification Opportunities for Quanergy Systems and Mind Technology

0.25

Correlation Coefficient

Quanergy Systems  Mind Technology

Modest diversification

The 3 months correlation between Quanergy and Mind is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Quanergy Systems and Mind Technology Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mind Technology Pref and Quanergy Systems 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 Quanergy Systems are associated (or correlated) with Mind Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mind Technology Pref has no effect on the direction of Quanergy Systems i.e., Quanergy Systems and Mind Technology go up and down completely randomly.

Pair Corralation between Quanergy Systems and Mind Technology

If you would invest  4.00  in Quanergy Systems on July 25, 2024 and sell it today you would earn a total of  0.00  from holding Quanergy Systems or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	11.11%
Values	Daily Returns

Quanergy Systems  vs.  Mind Technology Pref

Quanergy Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quanergy Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Quanergy Systems is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Mind Technology Pref

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mind Technology Pref has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Preferred Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in November 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Quanergy Systems and Mind Technology

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

The idea behind Quanergy Systems and Mind Technology Pref 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.