Correlation Between Inflection Point and Ihuman
Can any of the company-specific risk be diversified away by investing in both Inflection Point and Ihuman 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 Inflection Point and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inflection Point Acquisition and Ihuman Inc, you can compare the effects of market volatilities on Inflection Point and Ihuman 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 Inflection Point with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Ihuman.
Diversification Opportunities for Inflection Point and Ihuman
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inflection and Ihuman is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and Inflection Point 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 Inflection Point Acquisition are associated (or correlated) with Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Inflection Point i.e., Inflection Point and Ihuman go up and down completely randomly.
Pair Corralation between Inflection Point and Ihuman
Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 0.12 times more return on investment than Ihuman. However, Inflection Point Acquisition is 8.24 times less risky than Ihuman. It trades about 0.22 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.14 per unit of risk. If you would invest 1,086 in Inflection Point Acquisition on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Inflection Point Acquisition or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inflection Point Acquisition vs. Ihuman Inc
Performance |
| Timeline |
| Inflection Point Acq |
| Ihuman Inc |
Inflection Point and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and Ihuman
The main advantage of trading using opposite Inflection Point and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.| Inflection Point vs. Aterian | Inflection Point vs. Church Dwight | Inflection Point vs. Mannatech Incorporated | Inflection Point vs. Saia Inc |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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