Correlation Between People Infrastructure and ImExHS
Can any of the company-specific risk be diversified away by investing in both People Infrastructure and ImExHS 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 People Infrastructure and ImExHS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between People Infrastructure and ImExHS, you can compare the effects of market volatilities on People Infrastructure and ImExHS 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 People Infrastructure with a short position of ImExHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of People Infrastructure and ImExHS.
Diversification Opportunities for People Infrastructure and ImExHS
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between People and ImExHS is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding People Infrastructure and ImExHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImExHS and People Infrastructure 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 People Infrastructure are associated (or correlated) with ImExHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImExHS has no effect on the direction of People Infrastructure i.e., People Infrastructure and ImExHS go up and down completely randomly.
Pair Corralation between People Infrastructure and ImExHS
Assuming the 90 days trading horizon People Infrastructure is expected to under-perform the ImExHS. But the stock apears to be less risky and, when comparing its historical volatility, People Infrastructure is 1.02 times less risky than ImExHS. The stock trades about -0.06 of its potential returns per unit of risk. The ImExHS is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 50.00 in ImExHS on August 31, 2024 and sell it today you would lose (16.00) from holding ImExHS or give up 32.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.78% |
| Values | Daily Returns |
People Infrastructure vs. ImExHS
Performance |
| Timeline |
| People Infrastructure |
| ImExHS |
People Infrastructure and ImExHS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with People Infrastructure and ImExHS
The main advantage of trading using opposite People Infrastructure and ImExHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if People Infrastructure position performs unexpectedly, ImExHS 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 ImExHS will offset losses from the drop in ImExHS's long position.| People Infrastructure vs. Dexus Convenience Retail | People Infrastructure vs. Andean Silver Limited | People Infrastructure vs. Carnegie Clean Energy | People Infrastructure vs. Super Retail Group |
| ImExHS vs. Andean Silver Limited | ImExHS vs. Hotel Property Investments | ImExHS vs. Super Retail Group | ImExHS vs. Black Rock Mining |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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