Correlation Between Croghan Bancshares and Ihuman
Can any of the company-specific risk be diversified away by investing in both Croghan Bancshares 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 Croghan Bancshares and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Croghan Bancshares and Ihuman Inc, you can compare the effects of market volatilities on Croghan Bancshares 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 Croghan Bancshares with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Croghan Bancshares and Ihuman.
Diversification Opportunities for Croghan Bancshares and Ihuman
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Croghan and Ihuman is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Croghan Bancshares and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and Croghan Bancshares 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 Croghan Bancshares 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 Croghan Bancshares i.e., Croghan Bancshares and Ihuman go up and down completely randomly.
Pair Corralation between Croghan Bancshares and Ihuman
Given the investment horizon of 90 days Croghan Bancshares is expected to generate 0.37 times more return on investment than Ihuman. However, Croghan Bancshares is 2.69 times less risky than Ihuman. It trades about 0.06 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.03 per unit of risk. If you would invest 4,287 in Croghan Bancshares on September 12, 2024 and sell it today you would earn a total of 710.00 from holding Croghan Bancshares or generate 16.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.5% |
| Values | Daily Returns |
Croghan Bancshares vs. Ihuman Inc
Performance |
| Timeline |
| Croghan Bancshares |
| Ihuman Inc |
Croghan Bancshares and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Croghan Bancshares and Ihuman
The main advantage of trading using opposite Croghan Bancshares and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Croghan Bancshares 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.| Croghan Bancshares vs. Lifevantage | Croghan Bancshares vs. Olympic Steel | Croghan Bancshares vs. Magnite | Croghan Bancshares vs. Flexible Solutions International |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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