Correlation Between CK Hutchison and HUMANA
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By analyzing existing cross correlation between CK Hutchison Holdings and HUMANA INC, you can compare the effects of market volatilities on CK Hutchison 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 CK Hutchison with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Hutchison and HUMANA.
Diversification Opportunities for CK Hutchison and HUMANA
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between CKHUY and HUMANA is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding CK Hutchison Holdings and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and CK Hutchison 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 CK Hutchison Holdings 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 CK Hutchison i.e., CK Hutchison and HUMANA go up and down completely randomly.
Pair Corralation between CK Hutchison and HUMANA
Assuming the 90 days horizon CK Hutchison Holdings is expected to generate 2.33 times more return on investment than HUMANA. However, CK Hutchison is 2.33 times more volatile than HUMANA INC. It trades about 0.03 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.0 per unit of risk. If you would invest 478.00 in CK Hutchison Holdings on September 12, 2024 and sell it today you would earn a total of 67.00 from holding CK Hutchison Holdings or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.88% |
| Values | Daily Returns |
CK Hutchison Holdings vs. HUMANA INC
Performance |
| Timeline |
| CK Hutchison Holdings |
| HUMANA INC |
CK Hutchison and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Hutchison and HUMANA
The main advantage of trading using opposite CK Hutchison and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Hutchison 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.| CK Hutchison vs. HUMANA INC | CK Hutchison vs. Barloworld Ltd ADR | CK Hutchison vs. Morningstar Unconstrained Allocation | CK Hutchison vs. Thrivent High Yield |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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