Correlation Between 90331HPL1 and AETNA
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By analyzing existing cross correlation between US BANK NATIONAL and AETNA INC NEW, you can compare the effects of market volatilities on 90331HPL1 and AETNA 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 90331HPL1 with a short position of AETNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of 90331HPL1 and AETNA.
Diversification Opportunities for 90331HPL1 and AETNA
Weak diversification
The 3 months correlation between 90331HPL1 and AETNA is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding US BANK NATIONAL and AETNA INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AETNA INC NEW and 90331HPL1 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 US BANK NATIONAL are associated (or correlated) with AETNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AETNA INC NEW has no effect on the direction of 90331HPL1 i.e., 90331HPL1 and AETNA go up and down completely randomly.
Pair Corralation between 90331HPL1 and AETNA
Assuming the 90 days trading horizon US BANK NATIONAL is expected to generate 3.16 times more return on investment than AETNA. However, 90331HPL1 is 3.16 times more volatile than AETNA INC NEW. It trades about -0.07 of its potential returns per unit of risk. AETNA INC NEW is currently generating about -0.27 per unit of risk. If you would invest 9,662 in US BANK NATIONAL on September 2, 2024 and sell it today you would lose (115.00) from holding US BANK NATIONAL or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 53.33% |
| Values | Daily Returns |
US BANK NATIONAL vs. AETNA INC NEW
Performance |
| Timeline |
| US BANK NATIONAL |
| AETNA INC NEW |
90331HPL1 and AETNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 90331HPL1 and AETNA
The main advantage of trading using opposite 90331HPL1 and AETNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 90331HPL1 position performs unexpectedly, AETNA 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 AETNA will offset losses from the drop in AETNA's long position.| 90331HPL1 vs. Summit Environmental | 90331HPL1 vs. Shake Shack | 90331HPL1 vs. The Wendys Co | 90331HPL1 vs. Dominos Pizza |
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 Stocks Directory module to find actively traded stocks across global markets.
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