Correlation Between Advanced Info and HUMANA
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By analyzing existing cross correlation between Advanced Info Service and HUMANA INC, you can compare the effects of market volatilities on Advanced Info 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 Advanced Info with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and HUMANA.
Diversification Opportunities for Advanced Info and HUMANA
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advanced and HUMANA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Advanced Info 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 Advanced Info Service 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 Advanced Info i.e., Advanced Info and HUMANA go up and down completely randomly.
Pair Corralation between Advanced Info and HUMANA
Assuming the 90 days horizon Advanced Info is expected to generate 45.93 times less return on investment than HUMANA. But when comparing it to its historical volatility, Advanced Info Service is 28.35 times less risky than HUMANA. It trades about 0.05 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,917 in HUMANA INC on August 31, 2024 and sell it today you would lose (222.00) from holding HUMANA INC or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.67% |
| Values | Daily Returns |
Advanced Info Service vs. HUMANA INC
Performance |
| Timeline |
| Advanced Info Service |
| HUMANA INC |
Advanced Info and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and HUMANA
The main advantage of trading using opposite Advanced Info and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info 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 Advanced Info Service 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. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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