Correlation Between Weibo Corp and Ihuman
Can any of the company-specific risk be diversified away by investing in both Weibo Corp 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 Weibo Corp and Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weibo Corp and Ihuman Inc, you can compare the effects of market volatilities on Weibo Corp 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 Weibo Corp with a short position of Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and Ihuman.
Diversification Opportunities for Weibo Corp and Ihuman
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Weibo and Ihuman is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc and Weibo Corp 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 Weibo Corp 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 Weibo Corp i.e., Weibo Corp and Ihuman go up and down completely randomly.
Pair Corralation between Weibo Corp and Ihuman
Allowing for the 90-day total investment horizon Weibo Corp is expected to under-perform the Ihuman. But the stock apears to be less risky and, when comparing its historical volatility, Weibo Corp is 3.17 times less risky than Ihuman. The stock trades about -0.4 of its potential returns per unit of risk. The Ihuman Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 214.00 in Ihuman Inc on January 5, 2025 and sell it today you would earn a total of 2.00 from holding Ihuman Inc or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weibo Corp vs. Ihuman Inc
Performance |
| Timeline |
| Weibo Corp |
| Ihuman Inc |
Weibo Corp and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and Ihuman
The main advantage of trading using opposite Weibo Corp and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp 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.| Weibo Corp vs. Outbrain | Weibo Corp vs. Perion Network | Weibo Corp vs. Taboola Ltd Warrant | Weibo Corp vs. Fiverr International |
| Ihuman vs. Strategic Education | Ihuman vs. Grand Canyon Education | Ihuman vs. Universal Technical Institute | Ihuman vs. Laureate Education |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |