Correlation Between Analog Devices and HUMANA
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By analyzing existing cross correlation between Analog Devices and HUMANA INC, you can compare the effects of market volatilities on Analog Devices 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 Analog Devices with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Devices and HUMANA.
Diversification Opportunities for Analog Devices and HUMANA
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Analog and HUMANA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Analog Devices and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Analog Devices 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 Analog Devices 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 Analog Devices i.e., Analog Devices and HUMANA go up and down completely randomly.
Pair Corralation between Analog Devices and HUMANA
Considering the 90-day investment horizon Analog Devices is expected to under-perform the HUMANA. In addition to that, Analog Devices is 3.05 times more volatile than HUMANA INC. It trades about -0.02 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.05 per unit of volatility. If you would invest 8,090 in HUMANA INC on September 4, 2024 and sell it today you would lose (55.00) from holding HUMANA INC or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Analog Devices vs. HUMANA INC
Performance |
| Timeline |
| Analog Devices |
| HUMANA INC |
Analog Devices and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analog Devices and HUMANA
The main advantage of trading using opposite Analog Devices and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analog Devices 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.| Analog Devices vs. NXP Semiconductors NV | Analog Devices vs. Qualcomm Incorporated | Analog Devices vs. Broadcom | Analog Devices vs. Microchip Technology |
| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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