Correlation Between 235825AH9 and Ihuman

Can any of the company-specific risk be diversified away by investing in both 235825AH9 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 235825AH9 and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between US235825AH97 and Ihuman Inc, you can compare the effects of market volatilities on 235825AH9 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 235825AH9 with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of 235825AH9 and Ihuman.

Diversification Opportunities for 235825AH9 and Ihuman

-0.7

Correlation Coefficient

235825AH9  Ihuman

Excellent diversification

The 3 months correlation between 235825AH9 and Ihuman is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding US235825AH97 and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and 235825AH9 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 US235825AH97 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 235825AH9 i.e., 235825AH9 and Ihuman go up and down completely randomly.

Pair Corralation between 235825AH9 and Ihuman

Assuming the 90 days trading horizon US235825AH97 is expected to under-perform the Ihuman. But the bond apears to be less risky and, when comparing its historical volatility, US235825AH97 is 5.22 times less risky than Ihuman. The bond trades about -0.07 of its potential returns per unit of risk. The Ihuman Inc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  174.00  in Ihuman Inc on December 23, 2024 and sell it today you would earn a total of  98.00  from holding Ihuman Inc or generate 56.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

US235825AH97  vs.  Ihuman Inc

US235825AH97

Risk-Adjusted Performance

Very Weak

Over the last 90 days US235825AH97 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 235825AH9 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ihuman Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ihuman Inc are ranked lower than 13 (%) 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 235825AH9 and Ihuman

The main advantage of trading using opposite 235825AH9 and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 235825AH9 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 US235825AH97 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.