Correlation Between Ihuman and Saia
Can any of the company-specific risk be diversified away by investing in both Ihuman and Saia 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 Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Saia Inc, you can compare the effects of market volatilities on Ihuman and Saia 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 Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Saia.
Diversification Opportunities for Ihuman and Saia
Good diversification
The 3 months correlation between Ihuman and Saia is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc 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 Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of Ihuman i.e., Ihuman and Saia go up and down completely randomly.
Pair Corralation between Ihuman and Saia
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the Saia. But the stock apears to be less risky and, when comparing its historical volatility, Ihuman Inc is 1.55 times less risky than Saia. The stock trades about -0.14 of its potential returns per unit of risk. The Saia Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 48,861 in Saia Inc on September 1, 2024 and sell it today you would earn a total of 8,047 from holding Saia Inc or generate 16.47% 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. Saia Inc
Performance |
| Timeline |
| Ihuman Inc |
| Saia Inc |
Ihuman and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Saia
The main advantage of trading using opposite Ihuman and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Saia 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 Saia will offset losses from the drop in Saia's long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| CEOs Directory Screen CEOs from public companies around the world |