Correlation Between Iron Mountain and Humana
Can any of the company-specific risk be diversified away by investing in both Iron Mountain and Humana at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Iron Mountain and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iron Mountain and Humana Inc, you can compare the effects of market volatilities on Iron Mountain 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 Iron Mountain with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iron Mountain and Humana.
Diversification Opportunities for Iron Mountain and Humana
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iron and Humana is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Iron Mountain and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and Iron Mountain 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 Iron Mountain 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 Iron Mountain i.e., Iron Mountain and Humana go up and down completely randomly.
Pair Corralation between Iron Mountain and Humana
Assuming the 90 days trading horizon Iron Mountain is expected to under-perform the Humana. But the stock apears to be less risky and, when comparing its historical volatility, Iron Mountain is 1.19 times less risky than Humana. The stock trades about -0.1 of its potential returns per unit of risk. The Humana Inc is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 28,285 in Humana Inc on September 12, 2024 and sell it today you would lose (499.00) from holding Humana Inc or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iron Mountain vs. Humana Inc
Performance |
| Timeline |
| Iron Mountain |
| Humana Inc |
Iron Mountain and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iron Mountain and Humana
The main advantage of trading using opposite Iron Mountain and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iron Mountain 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.| Iron Mountain vs. Hong Kong Land | Iron Mountain vs. Neometals | Iron Mountain vs. Coor Service Management | Iron Mountain vs. Fidelity Sustainable USD |
| Humana vs. SMA Solar Technology | Humana vs. Iron Mountain | Humana vs. X FAB Silicon Foundries | Humana vs. Polar Capital Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |