Correlation Between Daiwa House and HUMANA
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By analyzing existing cross correlation between Daiwa House Industry and HUMANA INC, you can compare the effects of market volatilities on Daiwa House 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 Daiwa House with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daiwa House and HUMANA.
Diversification Opportunities for Daiwa House and HUMANA
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daiwa and HUMANA is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Daiwa House Industry and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Daiwa House 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 Daiwa House Industry 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 Daiwa House i.e., Daiwa House and HUMANA go up and down completely randomly.
Pair Corralation between Daiwa House and HUMANA
Assuming the 90 days horizon Daiwa House Industry is expected to generate 2.28 times more return on investment than HUMANA. However, Daiwa House is 2.28 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 -0.02 per unit of risk. If you would invest 3,059 in Daiwa House Industry on September 2, 2024 and sell it today you would earn a total of 88.00 from holding Daiwa House Industry or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
Daiwa House Industry vs. HUMANA INC
Performance |
| Timeline |
| Daiwa House Industry |
| HUMANA INC |
Daiwa House and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daiwa House and HUMANA
The main advantage of trading using opposite Daiwa House and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daiwa House 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.| Daiwa House vs. Sino Land Co | Daiwa House vs. Sun Hung Kai | Daiwa House vs. Holiday Island Holdings | Daiwa House vs. China Overseas Land |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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