Correlation Between Ihuman and Nubia Brand
Can any of the company-specific risk be diversified away by investing in both Ihuman and Nubia Brand 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 Nubia Brand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Nubia Brand International, you can compare the effects of market volatilities on Ihuman and Nubia Brand 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 Nubia Brand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Nubia Brand.
Diversification Opportunities for Ihuman and Nubia Brand
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ihuman and Nubia is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Nubia Brand International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nubia Brand International 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 Nubia Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nubia Brand International has no effect on the direction of Ihuman i.e., Ihuman and Nubia Brand go up and down completely randomly.
Pair Corralation between Ihuman and Nubia Brand
If you would invest 162.00 in Ihuman Inc on September 14, 2024 and sell it today you would earn a total of 6.00 from holding Ihuman Inc or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Ihuman Inc vs. Nubia Brand International
Performance |
| Timeline |
| Ihuman Inc |
| Nubia Brand International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ihuman and Nubia Brand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Nubia Brand
The main advantage of trading using opposite Ihuman and Nubia Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Nubia Brand 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 Nubia Brand will offset losses from the drop in Nubia Brand's long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| Nubia Brand vs. Ihuman Inc | Nubia Brand vs. Ryanair Holdings PLC | Nubia Brand vs. Bright Scholar Education | Nubia Brand vs. Air Lease |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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