Correlation Between SIA Engineering and Ihuman
Can any of the company-specific risk be diversified away by investing in both SIA Engineering 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 SIA Engineering and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIA Engineering and Ihuman Inc, you can compare the effects of market volatilities on SIA Engineering 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 SIA Engineering with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIA Engineering and Ihuman.
Diversification Opportunities for SIA Engineering and Ihuman
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SIA and Ihuman is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SIA Engineering and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and SIA Engineering 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 SIA Engineering 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 SIA Engineering i.e., SIA Engineering and Ihuman go up and down completely randomly.
Pair Corralation between SIA Engineering and Ihuman
Assuming the 90 days horizon SIA Engineering is expected to generate 5.5 times less return on investment than Ihuman. But when comparing it to its historical volatility, SIA Engineering is 26.15 times less risky than Ihuman. It trades about 0.08 of its potential returns per unit of risk. Ihuman Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 180.00 in Ihuman Inc on September 3, 2024 and sell it today you would lose (15.00) from holding Ihuman Inc or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SIA Engineering vs. Ihuman Inc
Performance |
| Timeline |
| SIA Engineering |
| Ihuman Inc |
SIA Engineering and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIA Engineering and Ihuman
The main advantage of trading using opposite SIA Engineering and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIA Engineering 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.| SIA Engineering vs. Aena SME SA | SIA Engineering vs. SPACE | SIA Engineering vs. Bayview Acquisition Corp | SIA Engineering vs. T Rowe Price |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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