Correlation Between QuantaSing Group and Ihuman

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

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

Diversification Opportunities for QuantaSing Group and Ihuman

-0.06

Correlation Coefficient

QuantaSing Group  Ihuman

Good diversification

The 3 months correlation between QuantaSing and Ihuman is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding QuantaSing Group Limited and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and QuantaSing Group 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 QuantaSing Group Limited 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 QuantaSing Group i.e., QuantaSing Group and Ihuman go up and down completely randomly.

Pair Corralation between QuantaSing Group and Ihuman

Considering the 90-day investment horizon QuantaSing Group Limited is expected to under-perform the Ihuman. But the stock apears to be less risky and, when comparing its historical volatility, QuantaSing Group Limited is 1.07 times less risky than Ihuman. The stock trades about -0.04 of its potential returns per unit of risk. The Ihuman Inc is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  172.00  in Ihuman Inc on December 2, 2024 and sell it today you would earn a total of  33.00  from holding Ihuman Inc or generate 19.19% return on investment over 90 days.

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

QuantaSing Group Limited  vs.  Ihuman Inc

QuantaSing Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days QuantaSing Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Ihuman Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ihuman Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Ihuman demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QuantaSing Group and Ihuman

The main advantage of trading using opposite QuantaSing Group and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QuantaSing Group 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 QuantaSing Group Limited 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.