Correlation Between Ihuman and Old Dominion
Can any of the company-specific risk be diversified away by investing in both Ihuman and Old Dominion 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 Old Dominion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Old Dominion Freight, you can compare the effects of market volatilities on Ihuman and Old Dominion 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 Old Dominion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Old Dominion.
Diversification Opportunities for Ihuman and Old Dominion
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ihuman and Old is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Old Dominion Freight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Dominion Freight 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 Old Dominion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Dominion Freight has no effect on the direction of Ihuman i.e., Ihuman and Old Dominion go up and down completely randomly.
Pair Corralation between Ihuman and Old Dominion
Allowing for the 90-day total investment horizon Ihuman is expected to generate 22.92 times less return on investment than Old Dominion. In addition to that, Ihuman is 1.77 times more volatile than Old Dominion Freight. It trades about 0.0 of its total potential returns per unit of risk. Old Dominion Freight is currently generating about 0.11 per unit of volatility. If you would invest 19,394 in Old Dominion Freight on August 28, 2024 and sell it today you would earn a total of 3,117 from holding Old Dominion Freight or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Old Dominion Freight
Performance |
| Timeline |
| Ihuman Inc |
| Old Dominion Freight |
Ihuman and Old Dominion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Old Dominion
The main advantage of trading using opposite Ihuman and Old Dominion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Old Dominion 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 Old Dominion will offset losses from the drop in Old Dominion's long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| Old Dominion vs. ArcBest Corp | Old Dominion vs. Marten Transport | Old Dominion vs. Werner Enterprises | Old Dominion vs. Knight Transportation |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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