Correlation Between APACHE and Ihuman
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By analyzing existing cross correlation between APACHE P 425 and Ihuman Inc, you can compare the effects of market volatilities on APACHE 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 APACHE with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of APACHE and Ihuman.
Diversification Opportunities for APACHE and Ihuman
Significant diversification
The 3 months correlation between APACHE and Ihuman is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding APACHE P 425 and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and APACHE 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 APACHE P 425 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 APACHE i.e., APACHE and Ihuman go up and down completely randomly.
Pair Corralation between APACHE and Ihuman
Assuming the 90 days trading horizon APACHE P 425 is expected to generate 1.43 times more return on investment than Ihuman. However, APACHE is 1.43 times more volatile than Ihuman Inc. It trades about -0.08 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.14 per unit of risk. If you would invest 7,431 in APACHE P 425 on September 1, 2024 and sell it today you would lose (428.00) from holding APACHE P 425 or give up 5.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
APACHE P 425 vs. Ihuman Inc
Performance |
| Timeline |
| APACHE P 425 |
| Ihuman Inc |
APACHE and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APACHE and Ihuman
The main advantage of trading using opposite APACHE and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APACHE 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.The idea behind APACHE P 425 and Ihuman Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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