Correlation Between Avidbank Holdings and HUMANA
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By analyzing existing cross correlation between Avidbank Holdings and HUMANA INC, you can compare the effects of market volatilities on Avidbank Holdings 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 Avidbank Holdings with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avidbank Holdings and HUMANA.
Diversification Opportunities for Avidbank Holdings and HUMANA
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Avidbank and HUMANA is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Avidbank Holdings and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Avidbank Holdings 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 Avidbank Holdings 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 Avidbank Holdings i.e., Avidbank Holdings and HUMANA go up and down completely randomly.
Pair Corralation between Avidbank Holdings and HUMANA
Given the investment horizon of 90 days Avidbank Holdings is expected to generate 1.07 times more return on investment than HUMANA. However, Avidbank Holdings is 1.07 times more volatile than HUMANA INC. It trades about 0.51 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.05 per unit of risk. If you would invest 2,050 in Avidbank Holdings on September 3, 2024 and sell it today you would earn a total of 160.00 from holding Avidbank Holdings or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Avidbank Holdings vs. HUMANA INC
Performance |
| Timeline |
| Avidbank Holdings |
| HUMANA INC |
Avidbank Holdings and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avidbank Holdings and HUMANA
The main advantage of trading using opposite Avidbank Holdings and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avidbank Holdings 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.| Avidbank Holdings vs. Western Asset Global | Avidbank Holdings vs. Invesco Trust For | Avidbank Holdings vs. Logan Ridge Finance | Avidbank Holdings vs. Invesco Advantage MIT |
| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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