Correlation Between Maanshan Iron and Ihuman
Can any of the company-specific risk be diversified away by investing in both Maanshan Iron 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 Maanshan Iron and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maanshan Iron Steel and Ihuman Inc, you can compare the effects of market volatilities on Maanshan Iron 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 Maanshan Iron with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maanshan Iron and Ihuman.
Diversification Opportunities for Maanshan Iron and Ihuman
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maanshan and Ihuman is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Maanshan Iron Steel and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and Maanshan Iron 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 Maanshan Iron Steel 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 Maanshan Iron i.e., Maanshan Iron and Ihuman go up and down completely randomly.
Pair Corralation between Maanshan Iron and Ihuman
Assuming the 90 days horizon Maanshan Iron Steel is expected to under-perform the Ihuman. But the pink sheet apears to be less risky and, when comparing its historical volatility, Maanshan Iron Steel is 1.14 times less risky than Ihuman. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Ihuman Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 191.00 in Ihuman Inc on August 30, 2024 and sell it today you would lose (27.00) from holding Ihuman Inc or give up 14.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maanshan Iron Steel vs. Ihuman Inc
Performance |
| Timeline |
| Maanshan Iron Steel |
| Ihuman Inc |
Maanshan Iron and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maanshan Iron and Ihuman
The main advantage of trading using opposite Maanshan Iron and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maanshan Iron 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.| Maanshan Iron vs. ArcelorMittal SA ADR | Maanshan Iron vs. Gerdau SA ADR | Maanshan Iron vs. POSCO Holdings |
| Ihuman vs. Gaotu Techedu DRC | Ihuman vs. TAL Education Group | Ihuman vs. Strategic Education | Ihuman vs. Vasta Platform |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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