Correlation Between Oriental Rise and Ihuman

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

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

Diversification Opportunities for Oriental Rise and Ihuman

-0.07

Correlation Coefficient

Oriental Rise  Ihuman

Good diversification

The 3 months correlation between Oriental and Ihuman is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Rise Holdings and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and Oriental Rise 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 Oriental Rise Holdings 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 Oriental Rise i.e., Oriental Rise and Ihuman go up and down completely randomly.

Pair Corralation between Oriental Rise and Ihuman

Given the investment horizon of 90 days Oriental Rise Holdings is expected to generate 29.59 times more return on investment than Ihuman. However, Oriental Rise is 29.59 times more volatile than Ihuman Inc. It trades about 0.1 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.04 per unit of risk. If you would invest  812.00  in Oriental Rise Holdings on October 23, 2024 and sell it today you would lose (653.00) from holding Oriental Rise Holdings or give up 80.42% of portfolio value over 90 days.

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

Oriental Rise Holdings  vs.  Ihuman Inc

Oriental Rise Holdings

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oriental Rise Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating forward indicators, Oriental Rise unveiled 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 latest weak performance, the Stock's technical indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Oriental Rise and Ihuman

The main advantage of trading using opposite Oriental Rise and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Rise 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 Oriental Rise Holdings 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.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..