Correlation Between Canlan Ice and Ihuman
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Ihuman Inc, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Ihuman.
Diversification Opportunities for Canlan Ice and Ihuman
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canlan and Ihuman is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Ihuman go up and down completely randomly.
Pair Corralation between Canlan Ice and Ihuman
If you would invest 297.00 in Canlan Ice Sports on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Canlan Ice Sports or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Ihuman Inc
Performance |
| Timeline |
| Canlan Ice Sports |
| Ihuman Inc |
Canlan Ice and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Ihuman
The main advantage of trading using opposite Canlan Ice and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. WiMi Hologram Cloud | Canlan Ice vs. Vita Coco | Canlan Ice vs. Constellation Brands Class | Canlan Ice vs. Radcom |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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