Correlation Between Afya and HUMANA
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By analyzing existing cross correlation between Afya and HUMANA INC, you can compare the effects of market volatilities on Afya 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 Afya with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afya and HUMANA.
Diversification Opportunities for Afya and HUMANA
Good diversification
The 3 months correlation between Afya and HUMANA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Afya and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Afya 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 Afya 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 Afya i.e., Afya and HUMANA go up and down completely randomly.
Pair Corralation between Afya and HUMANA
Given the investment horizon of 90 days Afya is expected to under-perform the HUMANA. In addition to that, Afya is 3.42 times more volatile than HUMANA INC. It trades about -0.19 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 5, 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 Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Afya vs. HUMANA INC
Performance |
| Timeline |
| Afya |
| HUMANA INC |
Afya and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afya and HUMANA
The main advantage of trading using opposite Afya and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afya 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.| Afya vs. Adtalem Global Education | Afya vs. Laureate Education | Afya vs. American Public Education | Afya vs. Strategic Education |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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