Correlation Between IhumanInc and Hamilton Beach
Can any of the company-specific risk be diversified away by investing in both IhumanInc and Hamilton Beach 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 IhumanInc and Hamilton Beach into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IhumanInc and Hamilton Beach Brands, you can compare the effects of market volatilities on IhumanInc and Hamilton Beach 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 IhumanInc with a short position of Hamilton Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of IhumanInc and Hamilton Beach.
Diversification Opportunities for IhumanInc and Hamilton Beach
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IhumanInc and Hamilton is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding IhumanInc and Hamilton Beach Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Beach Brands and IhumanInc 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 IhumanInc are associated (or correlated) with Hamilton Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Beach Brands has no effect on the direction of IhumanInc i.e., IhumanInc and Hamilton Beach go up and down completely randomly.
Pair Corralation between IhumanInc and Hamilton Beach
Allowing for the 90-day total investment horizon IhumanInc is expected to generate 0.36 times more return on investment than Hamilton Beach. However, IhumanInc is 2.8 times less risky than Hamilton Beach. It trades about -0.05 of its potential returns per unit of risk. Hamilton Beach Brands is currently generating about -0.07 per unit of risk. If you would invest 178.00 in IhumanInc on February 4, 2024 and sell it today you would lose (4.00) from holding IhumanInc or give up 2.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
IhumanInc vs. Hamilton Beach Brands
Performance |
Timeline |
IhumanInc |
Hamilton Beach Brands |
IhumanInc and Hamilton Beach Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IhumanInc and Hamilton Beach
The main advantage of trading using opposite IhumanInc and Hamilton Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IhumanInc position performs unexpectedly, Hamilton Beach 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 Hamilton Beach will offset losses from the drop in Hamilton Beach's long position.IhumanInc vs. Boqii Holding Limited | IhumanInc vs. Kuke Music Holding | IhumanInc vs. Thrivent High Yield | IhumanInc vs. Morningstar Unconstrained Allocation |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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