Correlation Between AGRICUL BK and Humana
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and Humana at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AGRICUL BK and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICUL BK CHINA H and Humana Inc, you can compare the effects of market volatilities on AGRICUL BK 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 AGRICUL BK with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and Humana.
Diversification Opportunities for AGRICUL BK and Humana
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGRICUL and Humana is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and AGRICUL BK 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 AGRICUL BK CHINA H 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 AGRICUL BK i.e., AGRICUL BK and Humana go up and down completely randomly.
Pair Corralation between AGRICUL BK and Humana
Assuming the 90 days trading horizon AGRICUL BK CHINA H is expected to generate 2.56 times more return on investment than Humana. However, AGRICUL BK is 2.56 times more volatile than Humana Inc. It trades about 0.06 of its potential returns per unit of risk. Humana Inc is currently generating about -0.03 per unit of risk. If you would invest 13.00 in AGRICUL BK CHINA H on August 28, 2024 and sell it today you would earn a total of 33.00 from holding AGRICUL BK CHINA H or generate 253.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. Humana Inc
Performance |
| Timeline |
| AGRICUL BK CHINA |
| Humana Inc |
AGRICUL BK and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and Humana
The main advantage of trading using opposite AGRICUL BK and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK 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.| AGRICUL BK vs. ACCSYS TECHPLC EO | AGRICUL BK vs. Wyndham Hotels Resorts | AGRICUL BK vs. FARO Technologies | AGRICUL BK vs. MHP Hotel AG |
| Humana vs. TERADATA | Humana vs. CITY OFFICE REIT | Humana vs. Hyrican Informationssysteme Aktiengesellschaft | Humana vs. Datang International Power |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |