Correlation Between KIMBERLY and Ihuman
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By analyzing existing cross correlation between KIMBERLY CLARK P and Ihuman Inc, you can compare the effects of market volatilities on KIMBERLY 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 KIMBERLY with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMBERLY and Ihuman.
Diversification Opportunities for KIMBERLY and Ihuman
Modest diversification
The 3 months correlation between KIMBERLY and Ihuman is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding KIMBERLY CLARK P and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and KIMBERLY 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 KIMBERLY CLARK P 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 KIMBERLY i.e., KIMBERLY and Ihuman go up and down completely randomly.
Pair Corralation between KIMBERLY and Ihuman
Assuming the 90 days trading horizon KIMBERLY CLARK P is expected to generate 0.64 times more return on investment than Ihuman. However, KIMBERLY CLARK P is 1.57 times less risky than Ihuman. It trades about 0.12 of its potential returns per unit of risk. Ihuman Inc is currently generating about 0.01 per unit of risk. If you would invest 11,428 in KIMBERLY CLARK P on September 12, 2024 and sell it today you would earn a total of 356.00 from holding KIMBERLY CLARK P or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
KIMBERLY CLARK P vs. Ihuman Inc
Performance |
| Timeline |
| KIMBERLY CLARK P |
| Ihuman Inc |
KIMBERLY and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMBERLY and Ihuman
The main advantage of trading using opposite KIMBERLY and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMBERLY 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.| KIMBERLY vs. Codexis | KIMBERLY vs. Luxfer Holdings PLC | KIMBERLY vs. Hudson Technologies | KIMBERLY vs. Flexible Solutions International |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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