Correlation Between Ihuman and Massimo Group

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

By analyzing existing cross correlation between Ihuman Inc and Massimo Group Common, you can compare the effects of market volatilities on Ihuman and Massimo Group 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 Massimo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Massimo Group.

Diversification Opportunities for Ihuman and Massimo Group

0.22

Correlation Coefficient

Ihuman  Massimo Group

Modest diversification

The 3 months correlation between Ihuman and Massimo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Massimo Group Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massimo Group Common 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 Massimo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massimo Group Common has no effect on the direction of Ihuman i.e., Ihuman and Massimo Group go up and down completely randomly.

Pair Corralation between Ihuman and Massimo Group

Allowing for the 90-day total investment horizon Ihuman Inc is expected to generate 0.67 times more return on investment than Massimo Group. However, Ihuman Inc is 1.49 times less risky than Massimo Group. It trades about 0.06 of its potential returns per unit of risk. Massimo Group Common is currently generating about -0.04 per unit of risk. If you would invest  154.00  in Ihuman Inc on September 12, 2024 and sell it today you would earn a total of  17.00  from holding Ihuman Inc or generate 11.04% return on investment over 90 days.

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

Ihuman Inc  vs.  Massimo Group Common

Ihuman Inc

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ihuman Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Ihuman demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Massimo Group Common

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Massimo Group Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's primary 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.

Pair Trading with Ihuman and Massimo Group

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

The idea behind Ihuman Inc and Massimo Group Common 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.