Correlation Between Hims Hers and Hengan International
Can any of the company-specific risk be diversified away by investing in both Hims Hers and Hengan International 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 Hims Hers and Hengan International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hims Hers Health and Hengan International Group, you can compare the effects of market volatilities on Hims Hers and Hengan International 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 Hims Hers with a short position of Hengan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hims Hers and Hengan International.
Diversification Opportunities for Hims Hers and Hengan International
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hims and Hengan is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hims Hers Health and Hengan International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengan International and Hims Hers 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 Hims Hers Health are associated (or correlated) with Hengan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengan International has no effect on the direction of Hims Hers i.e., Hims Hers and Hengan International go up and down completely randomly.
Pair Corralation between Hims Hers and Hengan International
Given the investment horizon of 90 days Hims Hers Health is expected to generate 3.18 times more return on investment than Hengan International. However, Hims Hers is 3.18 times more volatile than Hengan International Group. It trades about 0.14 of its potential returns per unit of risk. Hengan International Group is currently generating about -0.03 per unit of risk. If you would invest 1,165 in Hims Hers Health on September 3, 2024 and sell it today you would earn a total of 2,057 from holding Hims Hers Health or generate 176.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hims Hers Health vs. Hengan International Group
Performance |
| Timeline |
| Hims Hers Health |
| Hengan International |
Hims Hers and Hengan International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hims Hers and Hengan International
The main advantage of trading using opposite Hims Hers and Hengan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hims Hers position performs unexpectedly, Hengan International 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 Hengan International will offset losses from the drop in Hengan International's long position.| Hims Hers vs. ELF Beauty | Hims Hers vs. Newell Brands | Hims Hers vs. Virgin Group Acquisition | Hims Hers vs. Estee Lauder Companies |
| Hengan International vs. LOral SA | Hengan International vs. LOreal Co ADR | Hengan International vs. Unilever PLC ADR | Hengan International vs. Kimberly Clark |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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