Correlation Between GoldMining and Humana
Can any of the company-specific risk be diversified away by investing in both GoldMining 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 GoldMining and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and Humana Inc, you can compare the effects of market volatilities on GoldMining 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 GoldMining with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Humana.
Diversification Opportunities for GoldMining and Humana
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GoldMining and Humana is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and GoldMining 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 GoldMining 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 GoldMining i.e., GoldMining and Humana go up and down completely randomly.
Pair Corralation between GoldMining and Humana
Assuming the 90 days trading horizon GoldMining is expected to under-perform the Humana. In addition to that, GoldMining is 1.07 times more volatile than Humana Inc. It trades about -0.05 of its total potential returns per unit of risk. Humana Inc is currently generating about 0.21 per unit of volatility. If you would invest 26,131 in Humana Inc on September 1, 2024 and sell it today you would earn a total of 3,668 from holding Humana Inc or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.52% |
| Values | Daily Returns |
GoldMining vs. Humana Inc
Performance |
| Timeline |
| GoldMining |
| Humana Inc |
GoldMining and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and Humana
The main advantage of trading using opposite GoldMining and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining 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.| GoldMining vs. Greenroc Mining PLC | GoldMining vs. Silvercorp Metals | GoldMining vs. Sydbank | GoldMining vs. AMG Advanced Metallurgical |
| Humana vs. Greenroc Mining PLC | Humana vs. Invesco Physical Silver | Humana vs. GoldMining | Humana vs. Telecom Italia SpA |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |