Correlation Between Aurora Innovation and HUMANA
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By analyzing existing cross correlation between Aurora Innovation and HUMANA INC, you can compare the effects of market volatilities on Aurora Innovation 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 Aurora Innovation with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Innovation and HUMANA.
Diversification Opportunities for Aurora Innovation and HUMANA
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aurora and HUMANA is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Innovation and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Aurora Innovation 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 Aurora Innovation 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 Aurora Innovation i.e., Aurora Innovation and HUMANA go up and down completely randomly.
Pair Corralation between Aurora Innovation and HUMANA
Assuming the 90 days horizon Aurora Innovation is expected to generate 20.88 times more return on investment than HUMANA. However, Aurora Innovation is 20.88 times more volatile than HUMANA INC. It trades about 0.1 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.02 per unit of risk. If you would invest 26.00 in Aurora Innovation on August 25, 2024 and sell it today you would earn a total of 76.00 from holding Aurora Innovation or generate 292.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.2% |
| Values | Daily Returns |
Aurora Innovation vs. HUMANA INC
Performance |
| Timeline |
| Aurora Innovation |
| HUMANA INC |
Aurora Innovation and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Innovation and HUMANA
The main advantage of trading using opposite Aurora Innovation and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Innovation 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.The idea behind Aurora Innovation and HUMANA INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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