Correlation Between Ihuman and Berkeley
Can any of the company-specific risk be diversified away by investing in both Ihuman and Berkeley 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 Berkeley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and The Berkeley Group, you can compare the effects of market volatilities on Ihuman and Berkeley 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 Berkeley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Berkeley.
Diversification Opportunities for Ihuman and Berkeley
Very good diversification
The 3 months correlation between Ihuman and Berkeley is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and The Berkeley Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkeley Group 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 Berkeley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkeley Group has no effect on the direction of Ihuman i.e., Ihuman and Berkeley go up and down completely randomly.
Pair Corralation between Ihuman and Berkeley
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the Berkeley. In addition to that, Ihuman is 1.83 times more volatile than The Berkeley Group. It trades about -0.03 of its total potential returns per unit of risk. The Berkeley Group is currently generating about 0.09 per unit of volatility. If you would invest 4,899 in The Berkeley Group on September 12, 2024 and sell it today you would earn a total of 1,215 from holding The Berkeley Group or generate 24.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 42.6% |
| Values | Daily Returns |
Ihuman Inc vs. The Berkeley Group
Performance |
| Timeline |
| Ihuman Inc |
| Berkeley Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ihuman and Berkeley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Berkeley
The main advantage of trading using opposite Ihuman and Berkeley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Berkeley 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 Berkeley will offset losses from the drop in Berkeley's long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| Berkeley vs. Summit Materials | Berkeley vs. Bright Scholar Education | Berkeley vs. Ihuman Inc | Berkeley vs. Getty Copper |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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