Correlation Between IHUNT TECHNOLOGY and Impact Develop

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

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

Diversification Opportunities for IHUNT TECHNOLOGY and Impact Develop

0.77

Correlation Coefficient

IHUNT TECHNOLOGY  Impact Develop

Poor diversification

The 3 months correlation between IHUNT and Impact is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding IHUNT TECHNOLOGY IMPORT EXPORT and Impact Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Develop and IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY IMPORT EXPORT are associated (or correlated) with Impact Develop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Develop has no effect on the direction of IHUNT TECHNOLOGY i.e., IHUNT TECHNOLOGY and Impact Develop go up and down completely randomly.

Pair Corralation between IHUNT TECHNOLOGY and Impact Develop

Assuming the 90 days trading horizon IHUNT TECHNOLOGY IMPORT EXPORT is expected to generate 1.22 times more return on investment than Impact Develop. However, IHUNT TECHNOLOGY is 1.22 times more volatile than Impact Develop. It trades about 0.0 of its potential returns per unit of risk. Impact Develop is currently generating about -0.04 per unit of risk. If you would invest  43.00  in IHUNT TECHNOLOGY IMPORT EXPORT on September 14, 2024 and sell it today you would lose (6.00) from holding IHUNT TECHNOLOGY IMPORT EXPORT or give up 13.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.98%
Values	Daily Returns

IHUNT TECHNOLOGY IMPORT EXPORT  vs.  Impact Develop

IHUNT TECHNOLOGY IMPORT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IHUNT TECHNOLOGY IMPORT EXPORT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Impact Develop

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Impact Develop has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with IHUNT TECHNOLOGY and Impact Develop

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

The idea behind IHUNT TECHNOLOGY IMPORT EXPORT and Impact Develop 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.