Correlation Between Exceed World and Ihuman

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Can any of the company-specific risk be diversified away by investing in both Exceed World and Ihuman 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 Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exceed World and Ihuman Inc, you can compare the effects of market volatilities on Exceed World and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exceed World and Ihuman.

Diversification Opportunities for Exceed World and Ihuman

-0.29
  Correlation Coefficient

Very good diversification

The 3 months correlation between Exceed and Ihuman is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Exceed World and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Exceed World i.e., Exceed World and Ihuman go up and down completely randomly.

Pair Corralation between Exceed World and Ihuman

Given the investment horizon of 90 days Exceed World is expected to generate 4.38 times more return on investment than Ihuman. However, Exceed World is 4.38 times more volatile than Ihuman Inc. It trades about 0.05 of its potential returns per unit of risk. Ihuman Inc is currently generating about 0.02 per unit of risk. If you would invest  63.00  in Exceed World on September 19, 2024 and sell it today you would lose (13.00) from holding Exceed World or give up 20.63% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.21%
ValuesDaily Returns

Exceed World  vs.  Ihuman Inc

 Performance 
       Timeline  
Exceed World 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Exceed World are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent fundamental indicators, Exceed World showed solid returns over the last few months and may actually be approaching a breakup point.
Ihuman Inc 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Ihuman Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain technical indicators, Ihuman demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Exceed World and Ihuman Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Exceed World and Ihuman

The main advantage of trading using opposite Exceed World and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exceed World position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.
The idea behind Exceed World and Ihuman Inc 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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