Correlation Between Ihuman and Regions Financial
Can any of the company-specific risk be diversified away by investing in both Ihuman and Regions Financial 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 Regions Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Regions Financial, you can compare the effects of market volatilities on Ihuman and Regions Financial 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 Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Regions Financial.
Diversification Opportunities for Ihuman and Regions Financial
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ihuman and Regions is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial 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 Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of Ihuman i.e., Ihuman and Regions Financial go up and down completely randomly.
Pair Corralation between Ihuman and Regions Financial
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the Regions Financial. In addition to that, Ihuman is 1.95 times more volatile than Regions Financial. It trades about -0.14 of its total potential returns per unit of risk. Regions Financial is currently generating about 0.18 per unit of volatility. If you would invest 1,915 in Regions Financial on September 2, 2024 and sell it today you would earn a total of 83.00 from holding Regions Financial or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Regions Financial
Performance |
| Timeline |
| Ihuman Inc |
| Regions Financial |
Ihuman and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Regions Financial
The main advantage of trading using opposite Ihuman and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Regions Financial 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 Regions Financial will offset losses from the drop in Regions Financial's long position.| Ihuman vs. Wah Fu Education | Ihuman vs. Golden Sun Education | Ihuman vs. Elite Education Group | Ihuman vs. American Public Education |
| Regions Financial vs. Ihuman Inc | Regions Financial vs. Pinterest | Regions Financial vs. Universal Technical Institute | Regions Financial vs. Four Seasons Education |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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