Correlation Between Air Transport and Ihuman
Can any of the company-specific risk be diversified away by investing in both Air Transport 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 Air Transport and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Transport Services and Ihuman Inc, you can compare the effects of market volatilities on Air Transport 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 Air Transport with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Transport and Ihuman.
Diversification Opportunities for Air Transport and Ihuman
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Air and Ihuman is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Air Transport Services and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and Air Transport 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 Air Transport Services 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 Air Transport i.e., Air Transport and Ihuman go up and down completely randomly.
Pair Corralation between Air Transport and Ihuman
Given the investment horizon of 90 days Air Transport Services is expected to generate 0.04 times more return on investment than Ihuman. However, Air Transport Services is 27.45 times less risky than Ihuman. 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 2,227 in Air Transport Services on January 7, 2025 and sell it today you would lose (14.00) from holding Air Transport Services or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Transport Services vs. Ihuman Inc
Performance |
| Timeline |
| Air Transport Services |
| Ihuman Inc |
Air Transport and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Transport and Ihuman
The main advantage of trading using opposite Air Transport and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Transport 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.| Air Transport vs. Copa Holdings SA | Air Transport vs. SkyWest | Air Transport vs. Sun Country Airlines | Air Transport vs. Frontier Group Holdings |
| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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