Correlation Between Country Garden and HUMANA
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By analyzing existing cross correlation between Country Garden Holdings and HUMANA INC, you can compare the effects of market volatilities on Country Garden 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 Country Garden with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Country Garden and HUMANA.
Diversification Opportunities for Country Garden and HUMANA
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Country and HUMANA is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Country Garden Holdings and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Country Garden 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 Country Garden 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 Country Garden i.e., Country Garden and HUMANA go up and down completely randomly.
Pair Corralation between Country Garden and HUMANA
Assuming the 90 days horizon Country Garden is expected to generate 4.38 times less return on investment than HUMANA. But when comparing it to its historical volatility, Country Garden Holdings is 3.54 times less risky than HUMANA. It trades about 0.06 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 8,012 in HUMANA INC on September 2, 2024 and sell it today you would lose (317.00) from holding HUMANA INC or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.7% |
| Values | Daily Returns |
Country Garden Holdings vs. HUMANA INC
Performance |
| Timeline |
| Country Garden Holdings |
| HUMANA INC |
Country Garden and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Country Garden and HUMANA
The main advantage of trading using opposite Country Garden and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Country Garden 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.| Country Garden vs. HUMANA INC | Country Garden vs. SCOR PK | Country Garden vs. Aquagold International | Country Garden 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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