Correlation Between Chiba Bank and HUMANA
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By analyzing existing cross correlation between Chiba Bank Ltd and HUMANA INC, you can compare the effects of market volatilities on Chiba Bank 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 Chiba Bank with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiba Bank and HUMANA.
Diversification Opportunities for Chiba Bank and HUMANA
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chiba and HUMANA is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Chiba Bank Ltd and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Chiba Bank 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 Chiba Bank Ltd 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 Chiba Bank i.e., Chiba Bank and HUMANA go up and down completely randomly.
Pair Corralation between Chiba Bank and HUMANA
Assuming the 90 days horizon Chiba Bank Ltd is expected to generate 2.76 times more return on investment than HUMANA. However, Chiba Bank is 2.76 times more volatile than HUMANA INC. It trades about 0.02 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.04 per unit of risk. If you would invest 3,626 in Chiba Bank Ltd on September 19, 2024 and sell it today you would earn a total of 142.00 from holding Chiba Bank Ltd or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.57% |
| Values | Daily Returns |
Chiba Bank Ltd vs. HUMANA INC
Performance |
| Timeline |
| Chiba Bank |
| HUMANA INC |
Chiba Bank and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chiba Bank and HUMANA
The main advantage of trading using opposite Chiba Bank and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiba Bank 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.| Chiba Bank vs. First Hawaiian | Chiba Bank vs. Central Pacific Financial | Chiba Bank vs. Territorial Bancorp | Chiba Bank vs. Comerica |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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