Correlation Between Industrias Penoles and HUMANA
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By analyzing existing cross correlation between Industrias Penoles Sab and HUMANA INC, you can compare the effects of market volatilities on Industrias Penoles 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 Industrias Penoles with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrias Penoles and HUMANA.
Diversification Opportunities for Industrias Penoles and HUMANA
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrias and HUMANA is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Industrias Penoles Sab and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Industrias Penoles 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 Industrias Penoles Sab 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 Industrias Penoles i.e., Industrias Penoles and HUMANA go up and down completely randomly.
Pair Corralation between Industrias Penoles and HUMANA
Assuming the 90 days horizon Industrias Penoles Sab is expected to under-perform the HUMANA. In addition to that, Industrias Penoles is 5.45 times more volatile than HUMANA INC. It trades about -0.11 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.18 per unit of volatility. If you would invest 8,036 in HUMANA INC on September 2, 2024 and sell it today you would lose (341.00) from holding HUMANA INC or give up 4.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Industrias Penoles Sab vs. HUMANA INC
Performance |
| Timeline |
| Industrias Penoles Sab |
| HUMANA INC |
Industrias Penoles and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrias Penoles and HUMANA
The main advantage of trading using opposite Industrias Penoles and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrias Penoles 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.| Industrias Penoles vs. Talga Group | Industrias Penoles vs. Grupo Mxico SAB | Industrias Penoles vs. Argent Minerals Limited | Industrias Penoles vs. Edison Cobalt Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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