Correlation Between Stride and Ihuman
Can any of the company-specific risk be diversified away by investing in both Stride 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 Stride and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stride Inc and Ihuman Inc, you can compare the effects of market volatilities on Stride 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 Stride with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stride and Ihuman.
Diversification Opportunities for Stride and Ihuman
Very good diversification
The 3 months correlation between Stride and Ihuman is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Stride Inc and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and Stride 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 Stride Inc 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 Stride i.e., Stride and Ihuman go up and down completely randomly.
Pair Corralation between Stride and Ihuman
Considering the 90-day investment horizon Stride Inc is expected to generate 1.29 times more return on investment than Ihuman. However, Stride is 1.29 times more volatile than Ihuman Inc. It trades about 0.11 of its potential returns per unit of risk. Ihuman Inc is currently generating about 0.02 per unit of risk. If you would invest 8,072 in Stride Inc on August 31, 2024 and sell it today you would earn a total of 2,632 from holding Stride Inc or generate 32.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stride Inc vs. Ihuman Inc
Performance |
| Timeline |
| Stride Inc |
| Ihuman Inc |
Stride and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stride and Ihuman
The main advantage of trading using opposite Stride and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stride 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.| Stride vs. Laureate Education | Stride vs. American Public Education | Stride vs. Lincoln Educational Services | Stride vs. Adtalem Global Education |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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