Correlation Between HUMANA and Industrias Penoles
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By analyzing existing cross correlation between HUMANA INC and Industrias Penoles Sab, you can compare the effects of market volatilities on HUMANA and Industrias Penoles 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 Industrias Penoles. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Industrias Penoles.
Diversification Opportunities for HUMANA and Industrias Penoles
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Industrias is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Industrias Penoles Sab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrias Penoles Sab 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 Industrias Penoles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrias Penoles Sab has no effect on the direction of HUMANA i.e., HUMANA and Industrias Penoles go up and down completely randomly.
Pair Corralation between HUMANA and Industrias Penoles
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.18 times more return on investment than Industrias Penoles. However, HUMANA INC is 5.45 times less risky than Industrias Penoles. It trades about -0.18 of its potential returns per unit of risk. Industrias Penoles Sab is currently generating about -0.11 per unit of risk. 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 |
HUMANA INC vs. Industrias Penoles Sab
Performance |
| Timeline |
| HUMANA INC |
| Industrias Penoles Sab |
HUMANA and Industrias Penoles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Industrias Penoles
The main advantage of trading using opposite HUMANA and Industrias Penoles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Industrias Penoles 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 Industrias Penoles will offset losses from the drop in Industrias Penoles' long position.The idea behind HUMANA INC and Industrias Penoles Sab pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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