Correlation Between HUMANA and Shenzhen Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Shenzhen Investment Holdings, you can compare the effects of market volatilities on HUMANA and Shenzhen Investment 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 Shenzhen Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Shenzhen Investment.
Diversification Opportunities for HUMANA and Shenzhen Investment
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Shenzhen is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Shenzhen Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Investment 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 Shenzhen Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Investment has no effect on the direction of HUMANA i.e., HUMANA and Shenzhen Investment go up and down completely randomly.
Pair Corralation between HUMANA and Shenzhen Investment
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Shenzhen Investment. In addition to that, HUMANA is 1.46 times more volatile than Shenzhen Investment Holdings. It trades about -0.16 of its total potential returns per unit of risk. Shenzhen Investment Holdings is currently generating about 0.21 per unit of volatility. If you would invest 21.00 in Shenzhen Investment Holdings on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Shenzhen Investment Holdings or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Shenzhen Investment Holdings
Performance |
| Timeline |
| HUMANA INC |
| Shenzhen Investment |
HUMANA and Shenzhen Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Shenzhen Investment
The main advantage of trading using opposite HUMANA and Shenzhen Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Shenzhen Investment 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 Shenzhen Investment will offset losses from the drop in Shenzhen Investment's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Shenzhen Investment vs. Verra Mobility Corp | Shenzhen Investment vs. HUMANA INC | Shenzhen Investment vs. SCOR PK | Shenzhen Investment vs. Aquagold International |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |