Correlation Between Commonwealth Japan and HUMANA
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By analyzing existing cross correlation between Commonwealth Japan Fund and HUMANA INC, you can compare the effects of market volatilities on Commonwealth Japan 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 Commonwealth Japan with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commonwealth Japan and HUMANA.
Diversification Opportunities for Commonwealth Japan and HUMANA
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Commonwealth and HUMANA is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Commonwealth Japan Fund and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Commonwealth Japan 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 Commonwealth Japan Fund 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 Commonwealth Japan i.e., Commonwealth Japan and HUMANA go up and down completely randomly.
Pair Corralation between Commonwealth Japan and HUMANA
Assuming the 90 days horizon Commonwealth Japan Fund is expected to generate 0.94 times more return on investment than HUMANA. However, Commonwealth Japan Fund is 1.07 times less risky than HUMANA. It trades about 0.11 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.21 per unit of risk. If you would invest 379.00 in Commonwealth Japan Fund on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Commonwealth Japan Fund or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Commonwealth Japan Fund vs. HUMANA INC
Performance |
| Timeline |
| Commonwealth Japan |
| HUMANA INC |
Commonwealth Japan and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commonwealth Japan and HUMANA
The main advantage of trading using opposite Commonwealth Japan and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commonwealth Japan 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.| Commonwealth Japan vs. Commonwealth Australianew Zealand | Commonwealth Japan vs. Lazard Emerging Markets | Commonwealth Japan vs. ATLANTIC PETROLPF DK | Commonwealth Japan vs. Ashmore Emerging Markets |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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