Correlation Between Aew Real and HUMANA
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By analyzing existing cross correlation between Aew Real Estate and HUMANA INC, you can compare the effects of market volatilities on Aew Real 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 Aew Real with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aew Real and HUMANA.
Diversification Opportunities for Aew Real and HUMANA
Modest diversification
The 3 months correlation between Aew and HUMANA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aew Real Estate and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Aew Real 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 Aew Real Estate 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 Aew Real i.e., Aew Real and HUMANA go up and down completely randomly.
Pair Corralation between Aew Real and HUMANA
Assuming the 90 days horizon Aew Real is expected to generate 134.49 times less return on investment than HUMANA. But when comparing it to its historical volatility, Aew Real Estate is 79.91 times less risky than HUMANA. It trades about 0.04 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 7,891 in HUMANA INC on September 12, 2024 and sell it today you would lose (196.00) from holding HUMANA INC or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.01% |
| Values | Daily Returns |
Aew Real Estate vs. HUMANA INC
Performance |
| Timeline |
| Aew Real Estate |
| HUMANA INC |
Aew Real and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aew Real and HUMANA
The main advantage of trading using opposite Aew Real and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aew Real 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.| Aew Real vs. HUMANA INC | Aew Real vs. Barloworld Ltd ADR | Aew Real vs. Morningstar Unconstrained Allocation | Aew Real 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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