Correlation Between Ihuman and Global E

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Can any of the company-specific risk be diversified away by investing in both Ihuman and Global E 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 Global E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Global E Online, you can compare the effects of market volatilities on Ihuman and Global E 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 Global E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Global E.

Diversification Opportunities for Ihuman and Global E

IhumanGlobalDiversified AwayIhumanGlobalDiversified Away100%
0.34
  Correlation Coefficient

Weak diversification

The 3 months correlation between Ihuman and Global is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Global E Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Online 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 Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Online has no effect on the direction of Ihuman i.e., Ihuman and Global E go up and down completely randomly.

Pair Corralation between Ihuman and Global E

Allowing for the 90-day total investment horizon Ihuman Inc is expected to generate 0.85 times more return on investment than Global E. However, Ihuman Inc is 1.17 times less risky than Global E. It trades about 0.13 of its potential returns per unit of risk. Global E Online is currently generating about -0.05 per unit of risk. If you would invest  156.00  in Ihuman Inc on November 26, 2024 and sell it today you would earn a total of  31.00  from holding Ihuman Inc or generate 19.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Ihuman Inc  vs.  Global E Online

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 01020304050
JavaScript chart by amCharts 3.21.15IH GLBE
       Timeline  
Ihuman Inc 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ihuman Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Ihuman demonstrated solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.551.61.651.71.751.81.85
Global E Online 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Global E Online has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's fundamental drivers remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb45505560

Ihuman and Global E Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.15-6.1-4.06-2.010.02.074.216.358.4910.63 0.020.030.040.05
JavaScript chart by amCharts 3.21.15IH GLBE
       Returns  

Pair Trading with Ihuman and Global E

The main advantage of trading using opposite Ihuman and Global E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Global E 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 Global E will offset losses from the drop in Global E's long position.
The idea behind Ihuman Inc and Global E Online pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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