Correlation Between Anheuser Busch and HUMANA
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By analyzing existing cross correlation between Anheuser Busch Inbev and HUMANA INC, you can compare the effects of market volatilities on Anheuser Busch 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 Anheuser Busch with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anheuser Busch and HUMANA.
Diversification Opportunities for Anheuser Busch and HUMANA
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anheuser and HUMANA is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch Inbev and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Anheuser Busch 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 Anheuser Busch Inbev 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 Anheuser Busch i.e., Anheuser Busch and HUMANA go up and down completely randomly.
Pair Corralation between Anheuser Busch and HUMANA
Considering the 90-day investment horizon Anheuser Busch Inbev is expected to under-perform the HUMANA. In addition to that, Anheuser Busch is 3.09 times more volatile than HUMANA INC. It trades about -0.5 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.12 per unit of volatility. If you would invest 8,129 in HUMANA INC on August 23, 2024 and sell it today you would lose (94.00) from holding HUMANA INC or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Anheuser Busch Inbev vs. HUMANA INC
Performance |
| Timeline |
| Anheuser Busch Inbev |
| HUMANA INC |
Anheuser Busch and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anheuser Busch and HUMANA
The main advantage of trading using opposite Anheuser Busch and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anheuser Busch 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.| Anheuser Busch vs. Boston Beer | Anheuser Busch vs. Molson Coors Beverage | Anheuser Busch vs. Heineken NV | Anheuser Busch vs. Ambev SA ADR |
| HUMANA vs. Western Digital | HUMANA vs. Arrow Electronics | HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Keurig Dr Pepper |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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