Correlation Between Anhui Conch and HUMANA
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By analyzing existing cross correlation between Anhui Conch Cement and HUMANA INC, you can compare the effects of market volatilities on Anhui Conch and HUMANA 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 Anhui Conch with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Conch and HUMANA.
Diversification Opportunities for Anhui Conch and HUMANA
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anhui and HUMANA is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Conch Cement and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Anhui Conch 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 Anhui Conch Cement are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Anhui Conch i.e., Anhui Conch and HUMANA go up and down completely randomly.
Pair Corralation between Anhui Conch and HUMANA
Assuming the 90 days horizon Anhui Conch Cement is expected to generate 4.85 times more return on investment than HUMANA. However, Anhui Conch is 4.85 times more volatile than HUMANA INC. It trades about 0.05 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.01 per unit of risk. If you would invest 1,157 in Anhui Conch Cement on September 3, 2024 and sell it today you would earn a total of 138.00 from holding Anhui Conch Cement or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.6% |
| Values | Daily Returns |
Anhui Conch Cement vs. HUMANA INC
Performance |
| Timeline |
| Anhui Conch Cement |
| HUMANA INC |
Anhui Conch and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Conch and HUMANA
The main advantage of trading using opposite Anhui Conch and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Conch position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.| Anhui Conch vs. Cementos Pacasmayo SAA | Anhui Conch vs. Summit Materials | Anhui Conch vs. Eagle Materials | Anhui Conch vs. CRH PLC ADR |
| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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