Correlation Between First High and Ihuman
Can any of the company-specific risk be diversified away by investing in both First High 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 First High and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First High School Education and Ihuman Inc, you can compare the effects of market volatilities on First High 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 First High with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of First High and Ihuman.
Diversification Opportunities for First High and Ihuman
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and Ihuman is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding First High School Education and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and First High 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 First High School 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 First High i.e., First High and Ihuman go up and down completely randomly.
Pair Corralation between First High and Ihuman
Assuming the 90 days horizon First High School Education is expected to generate 4.64 times more return on investment than Ihuman. However, First High is 4.64 times more volatile than Ihuman Inc. It trades about 0.04 of its potential returns per unit of risk. Ihuman Inc is currently generating about 0.02 per unit of risk. If you would invest 29.00 in First High School Education on September 3, 2024 and sell it today you would lose (10.00) from holding First High School Education or give up 34.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 7.88% |
| Values | Daily Returns |
First High School Education vs. Ihuman Inc
Performance |
| Timeline |
| First High School |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ihuman Inc |
First High and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First High and Ihuman
The main advantage of trading using opposite First High and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First High 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.| First High vs. Gaotu Techedu DRC | First High vs. New Oriental Education | First High vs. Sunlands Technology Group | First High vs. Ihuman Inc |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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