Correlation Between Ihuman and Reitar Logtech

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

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

Diversification Opportunities for Ihuman and Reitar Logtech

0.3

Correlation Coefficient

Ihuman  Reitar Logtech

Weak diversification

The 3 months correlation between Ihuman and Reitar is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Reitar Logtech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitar Logtech Holdings 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 Reitar Logtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitar Logtech Holdings has no effect on the direction of Ihuman i.e., Ihuman and Reitar Logtech go up and down completely randomly.

Pair Corralation between Ihuman and Reitar Logtech

Allowing for the 90-day total investment horizon Ihuman Inc is expected to generate 0.79 times more return on investment than Reitar Logtech. However, Ihuman Inc is 1.27 times less risky than Reitar Logtech. It trades about -0.05 of its potential returns per unit of risk. Reitar Logtech Holdings is currently generating about -0.3 per unit of risk. If you would invest  173.00  in Ihuman Inc on October 11, 2024 and sell it today you would lose (7.00) from holding Ihuman Inc or give up 4.05% of portfolio value over 90 days.

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

Ihuman Inc  vs.  Reitar Logtech Holdings

Ihuman Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ihuman Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Reitar Logtech Holdings

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Reitar Logtech Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Reitar Logtech reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ihuman and Reitar Logtech

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

The idea behind Ihuman Inc and Reitar Logtech Holdings 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.