Correlation Between Chesapeake Finl and HUMANA
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By analyzing existing cross correlation between Chesapeake Finl Shs and HUMANA INC, you can compare the effects of market volatilities on Chesapeake Finl 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 Chesapeake Finl with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Finl and HUMANA.
Diversification Opportunities for Chesapeake Finl and HUMANA
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chesapeake and HUMANA is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Finl Shs and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Chesapeake Finl 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 Chesapeake Finl Shs 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 Chesapeake Finl i.e., Chesapeake Finl and HUMANA go up and down completely randomly.
Pair Corralation between Chesapeake Finl and HUMANA
Given the investment horizon of 90 days Chesapeake Finl is expected to generate 343.37 times less return on investment than HUMANA. But when comparing it to its historical volatility, Chesapeake Finl Shs is 29.07 times less risky than HUMANA. It trades about 0.01 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,120 in HUMANA INC on September 3, 2024 and sell it today you would lose (85.00) from holding HUMANA INC or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.7% |
| Values | Daily Returns |
Chesapeake Finl Shs vs. HUMANA INC
Performance |
| Timeline |
| Chesapeake Finl Shs |
| HUMANA INC |
Chesapeake Finl and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Finl and HUMANA
The main advantage of trading using opposite Chesapeake Finl and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Finl 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.| Chesapeake Finl vs. Western Asset Global | Chesapeake Finl vs. Invesco Trust For | Chesapeake Finl vs. Logan Ridge Finance | Chesapeake Finl vs. Invesco Advantage MIT |
| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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