Correlation Between Deluxe and Ihuman
Can any of the company-specific risk be diversified away by investing in both Deluxe 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 Deluxe and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deluxe and Ihuman Inc, you can compare the effects of market volatilities on Deluxe 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 Deluxe with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deluxe and Ihuman.
Diversification Opportunities for Deluxe and Ihuman
Excellent diversification
The 3 months correlation between Deluxe and Ihuman is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Deluxe and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and Deluxe 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 Deluxe 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 Deluxe i.e., Deluxe and Ihuman go up and down completely randomly.
Pair Corralation between Deluxe and Ihuman
Considering the 90-day investment horizon Deluxe is expected to generate 0.47 times more return on investment than Ihuman. However, Deluxe is 2.13 times less risky than Ihuman. It trades about -0.03 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.05 per unit of risk. If you would invest 2,262 in Deluxe on October 25, 2024 and sell it today you would lose (30.00) from holding Deluxe or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deluxe vs. Ihuman Inc
Performance |
| Timeline |
| Deluxe |
| Ihuman Inc |
Deluxe and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deluxe and Ihuman
The main advantage of trading using opposite Deluxe and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deluxe 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.| Deluxe vs. Criteo Sa | Deluxe vs. Emerald Expositions Events | Deluxe vs. Marchex | Deluxe vs. Integral Ad Science |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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