Correlation Between HUMANA and Shunfeng International
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By analyzing existing cross correlation between HUMANA INC and Shunfeng International Clean, you can compare the effects of market volatilities on HUMANA and Shunfeng International 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 Shunfeng International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Shunfeng International.
Diversification Opportunities for HUMANA and Shunfeng International
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Shunfeng is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Shunfeng International Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shunfeng International 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 Shunfeng International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shunfeng International has no effect on the direction of HUMANA i.e., HUMANA and Shunfeng International go up and down completely randomly.
Pair Corralation between HUMANA and Shunfeng International
Assuming the 90 days trading horizon HUMANA INC is expected to generate 12.33 times more return on investment than Shunfeng International. However, HUMANA is 12.33 times more volatile than Shunfeng International Clean. It trades about 0.07 of its potential returns per unit of risk. Shunfeng International Clean is currently generating about 0.02 per unit of risk. If you would invest 8,012 in HUMANA INC on August 31, 2024 and sell it today you would lose (317.00) from holding HUMANA INC or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.94% |
| Values | Daily Returns |
HUMANA INC vs. Shunfeng International Clean
Performance |
| Timeline |
| HUMANA INC |
| Shunfeng International |
HUMANA and Shunfeng International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Shunfeng International
The main advantage of trading using opposite HUMANA and Shunfeng International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Shunfeng International 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 Shunfeng International will offset losses from the drop in Shunfeng International's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Shunfeng International vs. Constellation Energy Corp | Shunfeng International vs. Orsted AS ADR | Shunfeng International vs. Orsted AS | Shunfeng International vs. HUMANA INC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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