Correlation Between Exceed World and QuantaSing Group

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

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

Diversification Opportunities for Exceed World and QuantaSing Group

-0.31

Correlation Coefficient

Exceed World  QuantaSing Group

Very good diversification

The 3 months correlation between Exceed and QuantaSing is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Exceed World and QuantaSing Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuantaSing Group and Exceed World 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 Exceed World are associated (or correlated) with QuantaSing Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuantaSing Group has no effect on the direction of Exceed World i.e., Exceed World and QuantaSing Group go up and down completely randomly.

Pair Corralation between Exceed World and QuantaSing Group

If you would invest  170.00  in QuantaSing Group Limited on July 5, 2024 and sell it today you would earn a total of  215.00  from holding QuantaSing Group Limited or generate 126.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Exceed World  vs.  QuantaSing Group Limited

Exceed World

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Exceed World has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in November 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

QuantaSing Group

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in QuantaSing Group Limited are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, QuantaSing Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exceed World and QuantaSing Group

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

The idea behind Exceed World and QuantaSing Group Limited 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.