Correlation Between Arkema SA and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Arkema SA ADR and HUMANA INC, you can compare the effects of market volatilities on Arkema SA 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 Arkema SA with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arkema SA and HUMANA.
Diversification Opportunities for Arkema SA and HUMANA
Weak diversification
The 3 months correlation between Arkema and HUMANA is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Arkema SA ADR and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Arkema SA 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 Arkema SA ADR 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 Arkema SA i.e., Arkema SA and HUMANA go up and down completely randomly.
Pair Corralation between Arkema SA and HUMANA
Assuming the 90 days horizon Arkema SA ADR is expected to under-perform the HUMANA. In addition to that, Arkema SA is 2.67 times more volatile than HUMANA INC. It trades about -0.09 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.04 per unit of volatility. If you would invest 7,957 in HUMANA INC on September 1, 2024 and sell it today you would lose (262.00) from holding HUMANA INC or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Arkema SA ADR vs. HUMANA INC
Performance |
| Timeline |
| Arkema SA ADR |
| HUMANA INC |
Arkema SA and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arkema SA and HUMANA
The main advantage of trading using opposite Arkema SA and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arkema SA 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.| Arkema SA vs. Akzo Nobel NV | Arkema SA vs. Avoca LLC | Arkema SA vs. AGC Inc ADR | Arkema SA vs. AirBoss of America |
| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |