Correlation Between IHS Holding and Japan 2x

Can any of the company-specific risk be diversified away by investing in both IHS Holding and Japan 2x 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 IHS Holding and Japan 2x into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between IHS Holding and Japan 2x Strategy, you can compare the effects of market volatilities on IHS Holding and Japan 2x 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 IHS Holding with a short position of Japan 2x. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHS Holding and Japan 2x.

Diversification Opportunities for IHS Holding and Japan 2x

0.4

Correlation Coefficient

IHS Holding  Japan 2x

Very weak diversification

The 3 months correlation between IHS and Japan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding IHS Holding and Japan 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan 2x Strategy and IHS Holding 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 IHS Holding are associated (or correlated) with Japan 2x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan 2x Strategy has no effect on the direction of IHS Holding i.e., IHS Holding and Japan 2x go up and down completely randomly.

Pair Corralation between IHS Holding and Japan 2x

Considering the 90-day investment horizon IHS Holding is expected to generate 1.95 times less return on investment than Japan 2x. But when comparing it to its historical volatility, IHS Holding is 1.3 times less risky than Japan 2x. It trades about 0.11 of its potential returns per unit of risk. Japan 2x Strategy is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  13,440  in Japan 2x Strategy on July 18, 2025 and sell it today you would earn a total of  4,377  from holding Japan 2x Strategy or generate 32.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

IHS Holding  vs.  Japan 2x Strategy

IHS Holding

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in IHS Holding are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent technical indicators, IHS Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Japan 2x Strategy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Japan 2x Strategy are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Japan 2x showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IHS Holding and Japan 2x

The main advantage of trading using opposite IHS Holding and Japan 2x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHS Holding position performs unexpectedly, Japan 2x 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 Japan 2x will offset losses from the drop in Japan 2x's long position.

The idea behind IHS Holding and Japan 2x Strategy 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.