Correlation Between Chubb and Huize Holding
Can any of the company-specific risk be diversified away by investing in both Chubb and Huize Holding 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 Chubb and Huize Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chubb and Huize Holding, you can compare the effects of market volatilities on Chubb and Huize Holding 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 Chubb with a short position of Huize Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chubb and Huize Holding.
Diversification Opportunities for Chubb and Huize Holding
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chubb and Huize is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Chubb and Huize Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huize Holding and Chubb 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 Chubb are associated (or correlated) with Huize Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huize Holding has no effect on the direction of Chubb i.e., Chubb and Huize Holding go up and down completely randomly.
Pair Corralation between Chubb and Huize Holding
Allowing for the 90-day total investment horizon Chubb is expected to generate 0.42 times more return on investment than Huize Holding. However, Chubb is 2.38 times less risky than Huize Holding. It trades about 0.08 of its potential returns per unit of risk. Huize Holding is currently generating about -0.03 per unit of risk. If you would invest 26,665 in Chubb on November 9, 2024 and sell it today you would earn a total of 623.00 from holding Chubb or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chubb vs. Huize Holding
Performance |
| Timeline |
| Chubb |
| Huize Holding |
Chubb and Huize Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chubb and Huize Holding
The main advantage of trading using opposite Chubb and Huize Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chubb position performs unexpectedly, Huize Holding 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 Huize Holding will offset losses from the drop in Huize Holding's long position.| Chubb vs. Cincinnati Financial | Chubb vs. Aflac Incorporated | Chubb vs. Dover | Chubb vs. Franklin Resources |
| Huize Holding vs. CorVel Corp | Huize Holding vs. Erie Indemnity | Huize Holding vs. Crawford Company | Huize Holding vs. eHealth |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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