Correlation Between Home Product and Humanica Public
Can any of the company-specific risk be diversified away by investing in both Home Product and Humanica Public 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 Home Product and Humanica Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Product Center and Humanica Public, you can compare the effects of market volatilities on Home Product and Humanica Public 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 Home Product with a short position of Humanica Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Product and Humanica Public.
Diversification Opportunities for Home Product and Humanica Public
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Home and Humanica is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Home Product Center and Humanica Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanica Public and Home Product 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 Home Product Center are associated (or correlated) with Humanica Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humanica Public has no effect on the direction of Home Product i.e., Home Product and Humanica Public go up and down completely randomly.
Pair Corralation between Home Product and Humanica Public
Assuming the 90 days trading horizon Home Product Center is expected to generate 0.97 times more return on investment than Humanica Public. However, Home Product Center is 1.03 times less risky than Humanica Public. It trades about 0.02 of its potential returns per unit of risk. Humanica Public is currently generating about -0.05 per unit of risk. If you would invest 929.00 in Home Product Center on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Home Product Center or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Home Product Center vs. Humanica Public
Performance |
| Timeline |
| Home Product Center |
| Humanica Public |
Home Product and Humanica Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Product and Humanica Public
The main advantage of trading using opposite Home Product and Humanica Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Product position performs unexpectedly, Humanica Public 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 Humanica Public will offset losses from the drop in Humanica Public's long position.| Home Product vs. CP ALL Public | Home Product vs. Bangkok Dusit Medical | Home Product vs. Central Pattana Public | Home Product vs. Advanced Info Service |
| Humanica Public vs. AP Public | Humanica Public vs. Jasmine International Public | Humanica Public vs. Asia Plus Group | Humanica Public vs. Bangchak Public |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |