Correlation Between Ihuman and Puxin
Can any of the company-specific risk be diversified away by investing in both Ihuman and Puxin 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 Puxin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Puxin Limited, you can compare the effects of market volatilities on Ihuman and Puxin 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 Puxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Puxin.
Diversification Opportunities for Ihuman and Puxin
Very good diversification
The 3 months correlation between Ihuman and Puxin is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Puxin Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puxin Limited 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 Puxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puxin Limited has no effect on the direction of Ihuman i.e., Ihuman and Puxin go up and down completely randomly.
Pair Corralation between Ihuman and Puxin
If you would invest 1.70 in Puxin Limited on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Puxin Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ihuman Inc vs. Puxin Limited
Performance |
| Timeline |
| Ihuman Inc |
| Puxin Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ihuman and Puxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Puxin
The main advantage of trading using opposite Ihuman and Puxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Puxin 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 Puxin will offset losses from the drop in Puxin's long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| Puxin vs. Ihuman Inc | Puxin vs. Gaotu Techedu DRC | Puxin vs. TAL Education Group | Puxin vs. 17 Education Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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