Correlation Between Hims Hers and Unicharm
Can any of the company-specific risk be diversified away by investing in both Hims Hers and Unicharm 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 Unicharm 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 Unicharm, you can compare the effects of market volatilities on Hims Hers and Unicharm 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 Unicharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hims Hers and Unicharm.
Diversification Opportunities for Hims Hers and Unicharm
Pay attention - limited upside
The 3 months correlation between Hims and Unicharm is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hims Hers Health and Unicharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unicharm 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 Unicharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unicharm has no effect on the direction of Hims Hers i.e., Hims Hers and Unicharm go up and down completely randomly.
Pair Corralation between Hims Hers and Unicharm
Given the investment horizon of 90 days Hims Hers Health is expected to generate 1.47 times more return on investment than Unicharm. However, Hims Hers is 1.47 times more volatile than Unicharm. It trades about 0.09 of its potential returns per unit of risk. Unicharm is currently generating about -0.03 per unit of risk. If you would invest 2,049 in Hims Hers Health on September 1, 2024 and sell it today you would earn a total of 1,173 from holding Hims Hers Health or generate 57.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Hims Hers Health vs. Unicharm
Performance |
| Timeline |
| Hims Hers Health |
| Unicharm |
Hims Hers and Unicharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hims Hers and Unicharm
The main advantage of trading using opposite Hims Hers and Unicharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hims Hers position performs unexpectedly, Unicharm 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 Unicharm will offset losses from the drop in Unicharm'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 |
| Unicharm vs. Estee Lauder Companies | Unicharm vs. Honest Company | Unicharm vs. Hims Hers Health | Unicharm vs. Procter Gamble |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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