Correlation Between Quhuo and Compass

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

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

Diversification Opportunities for Quhuo and Compass

-0.48

Correlation Coefficient

Quhuo  Compass

Very good diversification

The 3 months correlation between Quhuo and Compass is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Quhuo and Compass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compass and Quhuo 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 Quhuo are associated (or correlated) with Compass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compass has no effect on the direction of Quhuo i.e., Quhuo and Compass go up and down completely randomly.

Pair Corralation between Quhuo and Compass

Allowing for the 90-day total investment horizon Quhuo is expected to under-perform the Compass. In addition to that, Quhuo is 4.51 times more volatile than Compass. It trades about -0.03 of its total potential returns per unit of risk. Compass is currently generating about 0.07 per unit of volatility. If you would invest  936.00  in Compass on August 26, 2025 and sell it today you would earn a total of  124.00  from holding Compass or generate 13.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Quhuo  vs.  Compass

Quhuo

Risk-Adjusted Performance

Weakest

Over the last 90 days Quhuo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Compass

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Compass are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile primary indicators, Compass reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Quhuo and Compass

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

The idea behind Quhuo and Compass 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.