Correlation Between PLDT and HUMANA
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By analyzing existing cross correlation between PLDT Inc ADR and HUMANA INC, you can compare the effects of market volatilities on PLDT and HUMANA 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 PLDT with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLDT and HUMANA.
Diversification Opportunities for PLDT and HUMANA
Good diversification
The 3 months correlation between PLDT and HUMANA is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding PLDT Inc ADR and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and PLDT 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 PLDT Inc ADR are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of PLDT i.e., PLDT and HUMANA go up and down completely randomly.
Pair Corralation between PLDT and HUMANA
Considering the 90-day investment horizon PLDT Inc ADR is expected to generate 2.42 times more return on investment than HUMANA. However, PLDT is 2.42 times more volatile than HUMANA INC. It trades about 0.09 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.02 per unit of risk. If you would invest 2,204 in PLDT Inc ADR on March 5, 2024 and sell it today you would earn a total of 321.00 from holding PLDT Inc ADR or generate 14.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
PLDT Inc ADR vs. HUMANA INC
Performance |
Timeline |
PLDT Inc ADR |
HUMANA INC |
PLDT and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PLDT and HUMANA
The main advantage of trading using opposite PLDT and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLDT position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.PLDT vs. Iridium Communications | PLDT vs. Lumen Technologies | PLDT vs. Sify Technologies Limited | PLDT vs. InterDigital |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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