Correlation Between Ihuman and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Ihuman and Kite Realty 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 Ihuman and Kite Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Kite Realty Group, you can compare the effects of market volatilities on Ihuman and Kite Realty 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 Ihuman with a short position of Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Kite Realty.
Diversification Opportunities for Ihuman and Kite Realty
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ihuman and Kite is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Kite Realty Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kite Realty Group and Ihuman 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 Ihuman Inc are associated (or correlated) with Kite Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kite Realty Group has no effect on the direction of Ihuman i.e., Ihuman and Kite Realty go up and down completely randomly.
Pair Corralation between Ihuman and Kite Realty
Allowing for the 90-day total investment horizon Ihuman Inc is expected to generate 1.58 times more return on investment than Kite Realty. However, Ihuman is 1.58 times more volatile than Kite Realty Group. It trades about 0.33 of its potential returns per unit of risk. Kite Realty Group is currently generating about -0.02 per unit of risk. If you would invest 172.00 in Ihuman Inc on December 2, 2024 and sell it today you would earn a total of 33.00 from holding Ihuman Inc or generate 19.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ihuman Inc vs. Kite Realty Group
Performance |
Timeline |
Ihuman Inc |
Kite Realty Group |
Ihuman and Kite Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ihuman and Kite Realty
The main advantage of trading using opposite Ihuman and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Kite Realty 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 Kite Realty will offset losses from the drop in Kite Realty's long position.Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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