Correlation Between Ihuman and BCB Bancorp
Can any of the company-specific risk be diversified away by investing in both Ihuman and BCB Bancorp 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 BCB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and BCB Bancorp, you can compare the effects of market volatilities on Ihuman and BCB Bancorp 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 BCB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and BCB Bancorp.
Diversification Opportunities for Ihuman and BCB Bancorp
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ihuman and BCB is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and BCB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCB Bancorp 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 BCB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCB Bancorp has no effect on the direction of Ihuman i.e., Ihuman and BCB Bancorp go up and down completely randomly.
Pair Corralation between Ihuman and BCB Bancorp
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the BCB Bancorp. In addition to that, Ihuman is 1.53 times more volatile than BCB Bancorp. It trades about -0.02 of its total potential returns per unit of risk. BCB Bancorp is currently generating about 0.13 per unit of volatility. If you would invest 946.00 in BCB Bancorp on September 2, 2024 and sell it today you would earn a total of 381.00 from holding BCB Bancorp or generate 40.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. BCB Bancorp
Performance |
| Timeline |
| Ihuman Inc |
| BCB Bancorp |
Ihuman and BCB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and BCB Bancorp
The main advantage of trading using opposite Ihuman and BCB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, BCB Bancorp 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 BCB Bancorp will offset losses from the drop in BCB Bancorp's long position.| Ihuman vs. Wah Fu Education | Ihuman vs. Golden Sun Education | Ihuman vs. Elite Education Group | Ihuman vs. American Public Education |
| BCB Bancorp vs. Provident Financial Services | BCB Bancorp vs. First Mid Illinois | BCB Bancorp vs. ConnectOne Bancorp | BCB Bancorp vs. Finward Bancorp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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