Correlation Between Mount Logan and IHIT

Can any of the company-specific risk be diversified away by investing in both Mount Logan and IHIT 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 Mount Logan and IHIT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mount Logan Capital and IHIT, you can compare the effects of market volatilities on Mount Logan and IHIT 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 Mount Logan with a short position of IHIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mount Logan and IHIT.

Diversification Opportunities for Mount Logan and IHIT

0.0

Correlation Coefficient

Mount Logan  IHIT

Pay attention - limited upside

The 3 months correlation between Mount and IHIT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mount Logan Capital and IHIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHIT and Mount Logan 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 Mount Logan Capital are associated (or correlated) with IHIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHIT has no effect on the direction of Mount Logan i.e., Mount Logan and IHIT go up and down completely randomly.

Pair Corralation between Mount Logan and IHIT

If you would invest (100.00) in IHIT on January 26, 2025 and sell it today you would earn a total of  100.00  from holding IHIT or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mount Logan Capital  vs.  IHIT

Mount Logan Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mount Logan Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Mount Logan is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

IHIT

Risk-Adjusted Performance

Very Weak

Over the last 90 days IHIT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, IHIT is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Mount Logan and IHIT

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

The idea behind Mount Logan Capital and IHIT 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.

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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.