Correlation Between Ihuman and China Aircraft
Can any of the company-specific risk be diversified away by investing in both Ihuman and China Aircraft 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 China Aircraft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and China Aircraft Leasing, you can compare the effects of market volatilities on Ihuman and China Aircraft 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 China Aircraft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and China Aircraft.
Diversification Opportunities for Ihuman and China Aircraft
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ihuman and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and China Aircraft Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aircraft Leasing 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 China Aircraft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aircraft Leasing has no effect on the direction of Ihuman i.e., Ihuman and China Aircraft go up and down completely randomly.
Pair Corralation between Ihuman and China Aircraft
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the China Aircraft. In addition to that, Ihuman is 2.6 times more volatile than China Aircraft Leasing. It trades about -0.01 of its total potential returns per unit of risk. China Aircraft Leasing is currently generating about -0.02 per unit of volatility. If you would invest 48.00 in China Aircraft Leasing on November 27, 2024 and sell it today you would lose (8.00) from holding China Aircraft Leasing or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. China Aircraft Leasing
Performance |
| Timeline |
| Ihuman Inc |
| China Aircraft Leasing |
Ihuman and China Aircraft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and China Aircraft
The main advantage of trading using opposite Ihuman and China Aircraft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, China Aircraft 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 China Aircraft will offset losses from the drop in China Aircraft's long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| China Aircraft vs. Columbia Sportswear | China Aircraft vs. City Office REIT | China Aircraft vs. Tandy Leather Factory | China Aircraft vs. Figs Inc |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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