Correlation Between Firsthand Alternative and HUMANA
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By analyzing existing cross correlation between Firsthand Alternative Energy and HUMANA INC, you can compare the effects of market volatilities on Firsthand Alternative 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 Firsthand Alternative with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and HUMANA.
Diversification Opportunities for Firsthand Alternative and HUMANA
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Firsthand and HUMANA is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Firsthand Alternative 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 Firsthand Alternative Energy 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 Firsthand Alternative i.e., Firsthand Alternative and HUMANA go up and down completely randomly.
Pair Corralation between Firsthand Alternative and HUMANA
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 2.78 times more return on investment than HUMANA. However, Firsthand Alternative is 2.78 times more volatile than HUMANA INC. It trades about 0.03 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.03 per unit of risk. If you would invest 939.00 in Firsthand Alternative Energy on September 1, 2024 and sell it today you would earn a total of 82.00 from holding Firsthand Alternative Energy or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.87% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. HUMANA INC
Performance |
| Timeline |
| Firsthand Alternative |
| HUMANA INC |
Firsthand Alternative and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and HUMANA
The main advantage of trading using opposite Firsthand Alternative and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative 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.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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