Correlation Between Ihuman and BTC Digital
Can any of the company-specific risk be diversified away by investing in both Ihuman and BTC Digital 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 BTC Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and BTC Digital, you can compare the effects of market volatilities on Ihuman and BTC Digital 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 BTC Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and BTC Digital.
Diversification Opportunities for Ihuman and BTC Digital
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ihuman and BTC is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and BTC Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Digital 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 BTC Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Digital has no effect on the direction of Ihuman i.e., Ihuman and BTC Digital go up and down completely randomly.
Pair Corralation between Ihuman and BTC Digital
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the BTC Digital. But the stock apears to be less risky and, when comparing its historical volatility, Ihuman Inc is 18.7 times less risky than BTC Digital. The stock trades about -0.2 of its potential returns per unit of risk. The BTC Digital is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 157.00 in BTC Digital on September 3, 2024 and sell it today you would earn a total of 1,431 from holding BTC Digital or generate 911.46% 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. BTC Digital
Performance |
| Timeline |
| Ihuman Inc |
| BTC Digital |
Ihuman and BTC Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and BTC Digital
The main advantage of trading using opposite Ihuman and BTC Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, BTC Digital 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 BTC Digital will offset losses from the drop in BTC Digital's long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| BTC Digital vs. Visionary Education Technology | BTC Digital vs. Ihuman Inc | BTC Digital vs. 17 Education Technology | BTC Digital vs. Vasta Platform |
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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