Correlation Between Mechel OAO and Ihuman
Can any of the company-specific risk be diversified away by investing in both Mechel OAO 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 Mechel OAO and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mechel OAO and Ihuman Inc, you can compare the effects of market volatilities on Mechel OAO 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 Mechel OAO with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mechel OAO and Ihuman.
Diversification Opportunities for Mechel OAO and Ihuman
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mechel and Ihuman is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mechel OAO and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and Mechel OAO 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 Mechel OAO 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 Mechel OAO i.e., Mechel OAO and Ihuman go up and down completely randomly.
Pair Corralation between Mechel OAO and Ihuman
If you would invest 170.00 in Ihuman Inc on September 13, 2024 and sell it today you would earn a total of 1.00 from holding Ihuman Inc or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mechel OAO vs. Ihuman Inc
Performance |
| Timeline |
| Mechel OAO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ihuman Inc |
Mechel OAO and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mechel OAO and Ihuman
The main advantage of trading using opposite Mechel OAO and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mechel OAO 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.| Mechel OAO vs. Sun Life Financial | Mechel OAO vs. GoHealth | Mechel OAO vs. PennantPark Floating Rate | Mechel OAO vs. Sabre Insurance Group |
| 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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