Correlation Between Ihuman and Umpqua Holdings
Can any of the company-specific risk be diversified away by investing in both Ihuman and Umpqua Holdings 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 Umpqua Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Umpqua Holdings, you can compare the effects of market volatilities on Ihuman and Umpqua Holdings 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 Umpqua Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Umpqua Holdings.
Diversification Opportunities for Ihuman and Umpqua Holdings
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ihuman and Umpqua is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Umpqua Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Umpqua Holdings 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 Umpqua Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Umpqua Holdings has no effect on the direction of Ihuman i.e., Ihuman and Umpqua Holdings go up and down completely randomly.
Pair Corralation between Ihuman and Umpqua Holdings
Allowing for the 90-day total investment horizon Ihuman is expected to generate 9.12 times less return on investment than Umpqua Holdings. In addition to that, Ihuman is 2.63 times more volatile than Umpqua Holdings. It trades about 0.0 of its total potential returns per unit of risk. Umpqua Holdings is currently generating about 0.04 per unit of volatility. If you would invest 1,727 in Umpqua Holdings on September 14, 2024 and sell it today you would earn a total of 39.00 from holding Umpqua Holdings or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 9.09% |
| Values | Daily Returns |
Ihuman Inc vs. Umpqua Holdings
Performance |
| Timeline |
| Ihuman Inc |
| Umpqua Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ihuman and Umpqua Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Umpqua Holdings
The main advantage of trading using opposite Ihuman and Umpqua Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Umpqua Holdings 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 Umpqua Holdings will offset losses from the drop in Umpqua Holdings' long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| Umpqua Holdings vs. Nexstar Broadcasting Group | Umpqua Holdings vs. Ihuman Inc | Umpqua Holdings vs. American Airlines Group | Umpqua Holdings vs. Saia Inc |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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