Correlation Between 51Talk Online and Ihuman
Can any of the company-specific risk be diversified away by investing in both 51Talk Online 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 51Talk Online and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 51Talk Online Education and Ihuman Inc, you can compare the effects of market volatilities on 51Talk Online 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 51Talk Online with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of 51Talk Online and Ihuman.
Diversification Opportunities for 51Talk Online and Ihuman
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between 51Talk and Ihuman is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding 51Talk Online Education and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and 51Talk Online 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 51Talk Online Education 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 51Talk Online i.e., 51Talk Online and Ihuman go up and down completely randomly.
Pair Corralation between 51Talk Online and Ihuman
Considering the 90-day investment horizon 51Talk Online Education is expected to under-perform the Ihuman. In addition to that, 51Talk Online is 1.57 times more volatile than Ihuman Inc. It trades about -0.23 of its total potential returns per unit of risk. Ihuman Inc is currently generating about -0.14 per unit of volatility. If you would invest 178.00 in Ihuman Inc on September 1, 2024 and sell it today you would lose (13.00) from holding Ihuman Inc or give up 7.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
51Talk Online Education vs. Ihuman Inc
Performance |
| Timeline |
| 51Talk Online Education |
| Ihuman Inc |
51Talk Online and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 51Talk Online and Ihuman
The main advantage of trading using opposite 51Talk Online and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 51Talk Online 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.| 51Talk Online vs. American Public Education | 51Talk Online vs. ATA Creativity Global | 51Talk Online vs. Cogna Educacao SA | 51Talk Online vs. Adtalem Global Education |
| 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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