Correlation Between Pekin Life and Ihuman
Can any of the company-specific risk be diversified away by investing in both Pekin Life 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 Pekin Life and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pekin Life Insurance and Ihuman Inc, you can compare the effects of market volatilities on Pekin Life 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 Pekin Life with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and Ihuman.
Diversification Opportunities for Pekin Life and Ihuman
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pekin and Ihuman is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and Pekin Life 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 Pekin Life Insurance 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 Pekin Life i.e., Pekin Life and Ihuman go up and down completely randomly.
Pair Corralation between Pekin Life and Ihuman
Given the investment horizon of 90 days Pekin Life is expected to generate 1458.0 times less return on investment than Ihuman. But when comparing it to its historical volatility, Pekin Life Insurance is 15.3 times less risky than Ihuman. It trades about 0.0 of its potential returns per unit of risk. Ihuman Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 176.00 in Ihuman Inc on December 26, 2024 and sell it today you would earn a total of 77.00 from holding Ihuman Inc or generate 43.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Pekin Life Insurance vs. Ihuman Inc
Performance |
Timeline |
Pekin Life Insurance |
Ihuman Inc |
Pekin Life and Ihuman Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pekin Life and Ihuman
The main advantage of trading using opposite Pekin Life and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life 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.Pekin Life vs. FG Annuities Life | Pekin Life vs. MetLife Preferred Stock | Pekin Life vs. Brighthouse Financial | Pekin Life vs. MetLife Preferred Stock |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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