Correlation Between PCCW and HUMANA
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By analyzing existing cross correlation between PCCW Limited and HUMANA INC, you can compare the effects of market volatilities on PCCW 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 PCCW with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PCCW and HUMANA.
Diversification Opportunities for PCCW and HUMANA
Good diversification
The 3 months correlation between PCCW and HUMANA is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding PCCW Limited and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and PCCW 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 PCCW Limited 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 PCCW i.e., PCCW and HUMANA go up and down completely randomly.
Pair Corralation between PCCW and HUMANA
Assuming the 90 days horizon PCCW Limited is expected to generate 2.86 times more return on investment than HUMANA. However, PCCW is 2.86 times more volatile than HUMANA INC. It trades about 0.1 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.21 per unit of risk. If you would invest 554.00 in PCCW Limited on August 31, 2024 and sell it today you would earn a total of 36.00 from holding PCCW Limited or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PCCW Limited vs. HUMANA INC
Performance |
| Timeline |
| PCCW Limited |
| HUMANA INC |
PCCW and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PCCW and HUMANA
The main advantage of trading using opposite PCCW and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PCCW 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.| PCCW vs. HUMANA INC | PCCW vs. Aquagold International | PCCW vs. Barloworld Ltd ADR | PCCW vs. Thrivent High Yield |
| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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