Correlation Between HUMANA and Chesapeake Finl
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By analyzing existing cross correlation between HUMANA INC and Chesapeake Finl Shs, you can compare the effects of market volatilities on HUMANA and Chesapeake Finl 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 Chesapeake Finl. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Chesapeake Finl.
Diversification Opportunities for HUMANA and Chesapeake Finl
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Chesapeake is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Chesapeake Finl Shs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Finl Shs 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 Chesapeake Finl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Finl Shs has no effect on the direction of HUMANA i.e., HUMANA and Chesapeake Finl go up and down completely randomly.
Pair Corralation between HUMANA and Chesapeake Finl
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Chesapeake Finl. In addition to that, HUMANA is 1.21 times more volatile than Chesapeake Finl Shs. It trades about -0.21 of its total potential returns per unit of risk. Chesapeake Finl Shs is currently generating about 0.06 per unit of volatility. If you would invest 1,880 in Chesapeake Finl Shs on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Chesapeake Finl Shs or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. Chesapeake Finl Shs
Performance |
| Timeline |
| HUMANA INC |
| Chesapeake Finl Shs |
HUMANA and Chesapeake Finl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Chesapeake Finl
The main advantage of trading using opposite HUMANA and Chesapeake Finl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Chesapeake Finl 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 Chesapeake Finl will offset losses from the drop in Chesapeake Finl's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Chesapeake Finl vs. HUMANA INC | Chesapeake Finl vs. SCOR PK | Chesapeake Finl vs. Aquagold International | Chesapeake Finl 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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