Correlation Between Ihuman and Horizon Space
Can any of the company-specific risk be diversified away by investing in both Ihuman and Horizon Space 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 Horizon Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Horizon Space Acquisition, you can compare the effects of market volatilities on Ihuman and Horizon Space 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 Horizon Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Horizon Space.
Diversification Opportunities for Ihuman and Horizon Space
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ihuman and Horizon is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Horizon Space Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Space Acquisition 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 Horizon Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Space Acquisition has no effect on the direction of Ihuman i.e., Ihuman and Horizon Space go up and down completely randomly.
Pair Corralation between Ihuman and Horizon Space
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the Horizon Space. But the stock apears to be less risky and, when comparing its historical volatility, Ihuman Inc is 7.39 times less risky than Horizon Space. The stock trades about -0.01 of its potential returns per unit of risk. The Horizon Space Acquisition is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 8.60 in Horizon Space Acquisition on September 12, 2024 and sell it today you would earn a total of 3.40 from holding Horizon Space Acquisition or generate 39.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 22.73% |
| Values | Daily Returns |
Ihuman Inc vs. Horizon Space Acquisition
Performance |
| Timeline |
| Ihuman Inc |
| Horizon Space Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Ihuman and Horizon Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Horizon Space
The main advantage of trading using opposite Ihuman and Horizon Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Horizon Space 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 Horizon Space will offset losses from the drop in Horizon Space's long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| Horizon Space vs. HUMANA INC | Horizon Space vs. Barloworld Ltd ADR | Horizon Space vs. Morningstar Unconstrained Allocation | Horizon Space vs. Thrivent High Yield |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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