Correlation Between Huize Holding and Reliance Global
Can any of the company-specific risk be diversified away by investing in both Huize Holding and Reliance Global 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 Huize Holding and Reliance Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huize Holding and Reliance Global Group, you can compare the effects of market volatilities on Huize Holding and Reliance Global 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 Huize Holding with a short position of Reliance Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huize Holding and Reliance Global.
Diversification Opportunities for Huize Holding and Reliance Global
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Huize and Reliance is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Huize Holding and Reliance Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliance Global Group and Huize Holding 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 Huize Holding are associated (or correlated) with Reliance Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliance Global Group has no effect on the direction of Huize Holding i.e., Huize Holding and Reliance Global go up and down completely randomly.
Pair Corralation between Huize Holding and Reliance Global
Given the investment horizon of 90 days Huize Holding is expected to generate 0.57 times more return on investment than Reliance Global. However, Huize Holding is 1.77 times less risky than Reliance Global. It trades about -0.32 of its potential returns per unit of risk. Reliance Global Group is currently generating about -0.23 per unit of risk. If you would invest 83.00 in Huize Holding on August 27, 2024 and sell it today you would lose (21.00) from holding Huize Holding or give up 25.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huize Holding vs. Reliance Global Group
Performance |
| Timeline |
| Huize Holding |
| Reliance Global Group |
Huize Holding and Reliance Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huize Holding and Reliance Global
The main advantage of trading using opposite Huize Holding and Reliance Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huize Holding position performs unexpectedly, Reliance Global 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 Reliance Global will offset losses from the drop in Reliance Global's long position.| Huize Holding vs. CorVel Corp | Huize Holding vs. Erie Indemnity | Huize Holding vs. Crawford Company | Huize Holding vs. eHealth |
| Reliance Global vs. Huize Holding | Reliance Global vs. Selectquote | Reliance Global vs. eHealth | Reliance Global vs. GoHealth |
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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