Correlation Between Avient Corp and HUMANA
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By analyzing existing cross correlation between Avient Corp and HUMANA INC, you can compare the effects of market volatilities on Avient Corp 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 Avient Corp with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avient Corp and HUMANA.
Diversification Opportunities for Avient Corp and HUMANA
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Avient and HUMANA is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Avient Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Avient Corp 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 Avient Corp 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 Avient Corp i.e., Avient Corp and HUMANA go up and down completely randomly.
Pair Corralation between Avient Corp and HUMANA
Given the investment horizon of 90 days Avient Corp is expected to generate about the same return on investment as HUMANA INC. However, Avient Corp is 1.11 times more volatile than HUMANA INC. It trades about -0.17 of its potential returns per unit of risk. HUMANA INC is currently producing about -0.19 per unit of risk. If you would invest 8,064 in HUMANA INC on September 13, 2024 and sell it today you would lose (369.00) from holding HUMANA INC or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Avient Corp vs. HUMANA INC
Performance |
| Timeline |
| Avient Corp |
| HUMANA INC |
Avient Corp and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avient Corp and HUMANA
The main advantage of trading using opposite Avient Corp and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avient Corp 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.| Avient Corp vs. Axalta Coating Systems | Avient Corp vs. H B Fuller | Avient Corp vs. Quaker Chemical | Avient Corp vs. Cabot |
| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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