Correlation Between Ihuman and Maanshan Iron
Can any of the company-specific risk be diversified away by investing in both Ihuman and Maanshan Iron 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 Maanshan Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Maanshan Iron Steel, you can compare the effects of market volatilities on Ihuman and Maanshan Iron 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 Maanshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Maanshan Iron.
Diversification Opportunities for Ihuman and Maanshan Iron
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ihuman and Maanshan is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Maanshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maanshan Iron Steel 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 Maanshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maanshan Iron Steel has no effect on the direction of Ihuman i.e., Ihuman and Maanshan Iron go up and down completely randomly.
Pair Corralation between Ihuman and Maanshan Iron
Allowing for the 90-day total investment horizon Ihuman Inc is expected to generate 1.19 times more return on investment than Maanshan Iron. However, Ihuman is 1.19 times more volatile than Maanshan Iron Steel. It trades about 0.01 of its potential returns per unit of risk. Maanshan Iron Steel is currently generating about 0.0 per unit of risk. If you would invest 189.00 in Ihuman Inc on August 26, 2024 and sell it today you would lose (37.00) from holding Ihuman Inc or give up 19.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Maanshan Iron Steel
Performance |
| Timeline |
| Ihuman Inc |
| Maanshan Iron Steel |
Ihuman and Maanshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Maanshan Iron
The main advantage of trading using opposite Ihuman and Maanshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Maanshan Iron 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 Maanshan Iron will offset losses from the drop in Maanshan Iron's long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| Maanshan Iron vs. ArcelorMittal SA ADR | Maanshan Iron vs. Gerdau SA ADR | Maanshan Iron vs. POSCO Holdings |
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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