Correlation Between HUMANA and China Overseas
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and China Overseas Land, you can compare the effects of market volatilities on HUMANA and China Overseas 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 HUMANA with a short position of China Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and China Overseas.
Diversification Opportunities for HUMANA and China Overseas
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and China is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and China Overseas Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Overseas Land and HUMANA 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 HUMANA INC are associated (or correlated) with China Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Overseas Land has no effect on the direction of HUMANA i.e., HUMANA and China Overseas go up and down completely randomly.
Pair Corralation between HUMANA and China Overseas
Assuming the 90 days trading horizon HUMANA INC is expected to generate 27.1 times more return on investment than China Overseas. However, HUMANA is 27.1 times more volatile than China Overseas Land. It trades about 0.08 of its potential returns per unit of risk. China Overseas Land is currently generating about 0.0 per unit of risk. If you would invest 7,917 in HUMANA INC on August 31, 2024 and sell it today you would lose (222.00) from holding HUMANA INC or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.11% |
| Values | Daily Returns |
HUMANA INC vs. China Overseas Land
Performance |
| Timeline |
| HUMANA INC |
| China Overseas Land |
HUMANA and China Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and China Overseas
The main advantage of trading using opposite HUMANA and China Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, China Overseas 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 China Overseas will offset losses from the drop in China Overseas' long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| China Overseas vs. HUMANA INC | China Overseas vs. SCOR PK | China Overseas vs. Aquagold International | China Overseas 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |