Correlation Between Murano Global and Ihuman

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

By analyzing existing cross correlation between Murano Global Investments and Ihuman Inc, you can compare the effects of market volatilities on Murano Global and Ihuman 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 Murano Global with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Murano Global and Ihuman.

Diversification Opportunities for Murano Global and Ihuman

-0.55

Correlation Coefficient

Murano Global  Ihuman

Excellent diversification

The 3 months correlation between Murano and Ihuman is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Murano Global Investments and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and Murano Global 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 Murano Global Investments are associated (or correlated) with Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Murano Global i.e., Murano Global and Ihuman go up and down completely randomly.

Pair Corralation between Murano Global and Ihuman

Given the investment horizon of 90 days Murano Global Investments is expected to generate 1.22 times more return on investment than Ihuman. However, Murano Global is 1.22 times more volatile than Ihuman Inc. It trades about 0.07 of its potential returns per unit of risk. Ihuman Inc is currently generating about 0.02 per unit of risk. If you would invest  1,047  in Murano Global Investments on October 6, 2024 and sell it today you would earn a total of  34.00  from holding Murano Global Investments or generate 3.25% return on investment over 90 days.

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

Murano Global Investments  vs.  Ihuman Inc

Murano Global Investments

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Murano Global Investments are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Murano Global displayed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Murano Global and Ihuman

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

The idea behind Murano Global Investments and Ihuman Inc 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.