Correlation Between Ihuman and Daily Journal
Can any of the company-specific risk be diversified away by investing in both Ihuman and Daily Journal 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 Daily Journal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Daily Journal Corp, you can compare the effects of market volatilities on Ihuman and Daily Journal 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 Daily Journal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Daily Journal.
Diversification Opportunities for Ihuman and Daily Journal
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ihuman and Daily is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Daily Journal Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daily Journal Corp 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 Daily Journal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daily Journal Corp has no effect on the direction of Ihuman i.e., Ihuman and Daily Journal go up and down completely randomly.
Pair Corralation between Ihuman and Daily Journal
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the Daily Journal. But the stock apears to be less risky and, when comparing its historical volatility, Ihuman Inc is 2.03 times less risky than Daily Journal. The stock trades about -0.45 of its potential returns per unit of risk. The Daily Journal Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 49,560 in Daily Journal Corp on August 27, 2024 and sell it today you would earn a total of 8,188 from holding Daily Journal Corp or generate 16.52% 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. Daily Journal Corp
Performance |
| Timeline |
| Ihuman Inc |
| Daily Journal Corp |
Ihuman and Daily Journal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Daily Journal
The main advantage of trading using opposite Ihuman and Daily Journal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Daily Journal 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 Daily Journal will offset losses from the drop in Daily Journal's long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| Daily Journal vs. Meridianlink | Daily Journal vs. CoreCard Corp | Daily Journal vs. Enfusion | Daily Journal vs. Issuer Direct Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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