Correlation Between Ihuman and Ault Alliance
Can any of the company-specific risk be diversified away by investing in both Ihuman and Ault Alliance 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 Ihuman and Ault Alliance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Ault Alliance, you can compare the effects of market volatilities on Ihuman and Ault Alliance 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 Ihuman with a short position of Ault Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Ault Alliance.
Diversification Opportunities for Ihuman and Ault Alliance
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ihuman and Ault is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Ault Alliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ault Alliance and Ihuman 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 Ihuman Inc are associated (or correlated) with Ault Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ault Alliance has no effect on the direction of Ihuman i.e., Ihuman and Ault Alliance go up and down completely randomly.
Pair Corralation between Ihuman and Ault Alliance
If you would invest 170.00 in Ihuman Inc on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Ihuman Inc or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ihuman Inc vs. Ault Alliance
Performance |
| Timeline |
| Ihuman Inc |
| Ault Alliance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ihuman and Ault Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Ault Alliance
The main advantage of trading using opposite Ihuman and Ault Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Ault Alliance 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 Ault Alliance will offset losses from the drop in Ault Alliance's long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| Ault Alliance vs. Where Food Comes | Ault Alliance vs. AMCON Distributing | Ault Alliance vs. BOS Better Online | Ault Alliance vs. Hf Foods Group |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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