Correlation Between Ihuman and 126408GX5

Can any of the company-specific risk be diversified away by investing in both Ihuman and 126408GX5 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 126408GX5 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ihuman Inc and CSX P 44, you can compare the effects of market volatilities on Ihuman and 126408GX5 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 126408GX5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and 126408GX5.

Diversification Opportunities for Ihuman and 126408GX5

-0.4

Correlation Coefficient

Ihuman  126408GX5

Very good diversification

The 3 months correlation between Ihuman and 126408GX5 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and CSX P 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 126408GX5 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 126408GX5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 126408GX5 has no effect on the direction of Ihuman i.e., Ihuman and 126408GX5 go up and down completely randomly.

Pair Corralation between Ihuman and 126408GX5

Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the 126408GX5. But the stock apears to be less risky and, when comparing its historical volatility, Ihuman Inc is 1.22 times less risky than 126408GX5. The stock trades about -0.13 of its potential returns per unit of risk. The CSX P 44 is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  9,184  in CSX P 44 on October 9, 2024 and sell it today you would lose (111.00) from holding CSX P 44 or give up 1.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	34.43%
Values	Daily Returns

Ihuman Inc  vs.  CSX P 44

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.

126408GX5

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days CSX P 44 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 126408GX5 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ihuman and 126408GX5

The main advantage of trading using opposite Ihuman and 126408GX5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, 126408GX5 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 126408GX5 will offset losses from the drop in 126408GX5's long position.

The idea behind Ihuman Inc and CSX P 44 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.