Correlation Between Ichitan Group and Interhides Public

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

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

Diversification Opportunities for Ichitan Group and Interhides Public

0.48

Correlation Coefficient

Ichitan Group  Interhides Public

Very weak diversification

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

Pair Corralation between Ichitan Group and Interhides Public

Assuming the 90 days trading horizon Ichitan Group Public is expected to under-perform the Interhides Public. But the stock apears to be less risky and, when comparing its historical volatility, Ichitan Group Public is 1.02 times less risky than Interhides Public. The stock trades about -0.14 of its potential returns per unit of risk. The Interhides Public is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  161.00  in Interhides Public on December 29, 2024 and sell it today you would lose (13.00) from holding Interhides Public or give up 8.07% of portfolio value over 90 days.

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

Ichitan Group Public  vs.  Interhides Public

Ichitan Group Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ichitan Group Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Interhides Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Interhides Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Ichitan Group and Interhides Public

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

The idea behind Ichitan Group Public and Interhides Public 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.