Correlation Between HUMANA and Zhong Yang
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By analyzing existing cross correlation between HUMANA INC and Zhong Yang Financial, you can compare the effects of market volatilities on HUMANA and Zhong Yang 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 Zhong Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Zhong Yang.
Diversification Opportunities for HUMANA and Zhong Yang
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Zhong is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Zhong Yang Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhong Yang Financial 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 Zhong Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhong Yang Financial has no effect on the direction of HUMANA i.e., HUMANA and Zhong Yang go up and down completely randomly.
Pair Corralation between HUMANA and Zhong Yang
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.08 times more return on investment than Zhong Yang. However, HUMANA INC is 12.15 times less risky than Zhong Yang. It trades about -0.02 of its potential returns per unit of risk. Zhong Yang Financial is currently generating about -0.01 per unit of risk. If you would invest 8,008 in HUMANA INC on September 2, 2024 and sell it today you would lose (313.00) from holding HUMANA INC or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. Zhong Yang Financial
Performance |
| Timeline |
| HUMANA INC |
| Zhong Yang Financial |
HUMANA and Zhong Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Zhong Yang
The main advantage of trading using opposite HUMANA and Zhong Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Zhong Yang 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 Zhong Yang will offset losses from the drop in Zhong Yang's long position.The idea behind HUMANA INC and Zhong Yang Financial 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.| Zhong Yang vs. Netcapital | Zhong Yang vs. Applied Blockchain | Zhong Yang vs. Magic Empire Global | Zhong Yang vs. Lazard |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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