Correlation Between AfriTin Mining and Humana
Can any of the company-specific risk be diversified away by investing in both AfriTin Mining 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 AfriTin Mining and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AfriTin Mining and Humana Inc, you can compare the effects of market volatilities on AfriTin Mining 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 AfriTin Mining with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfriTin Mining and Humana.
Diversification Opportunities for AfriTin Mining and Humana
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AfriTin and Humana is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and AfriTin Mining 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 AfriTin Mining 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 AfriTin Mining i.e., AfriTin Mining and Humana go up and down completely randomly.
Pair Corralation between AfriTin Mining and Humana
Assuming the 90 days trading horizon AfriTin Mining is expected to generate 2.73 times more return on investment than Humana. However, AfriTin Mining is 2.73 times more volatile than Humana Inc. It trades about 0.01 of its potential returns per unit of risk. Humana Inc is currently generating about -0.03 per unit of risk. If you would invest 275.00 in AfriTin Mining on September 12, 2024 and sell it today you would lose (5.00) from holding AfriTin Mining or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AfriTin Mining vs. Humana Inc
Performance |
| Timeline |
| AfriTin Mining |
| Humana Inc |
AfriTin Mining and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AfriTin Mining and Humana
The main advantage of trading using opposite AfriTin Mining and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining 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.| AfriTin Mining vs. Alior Bank SA | AfriTin Mining vs. Baker Steel Resources | AfriTin Mining vs. National Bank of | AfriTin Mining vs. Ally Financial |
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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.
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