Correlation Between Avoca LLC and HUMANA
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By analyzing existing cross correlation between Avoca LLC and HUMANA INC, you can compare the effects of market volatilities on Avoca LLC 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 Avoca LLC with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avoca LLC and HUMANA.
Diversification Opportunities for Avoca LLC and HUMANA
Modest diversification
The 3 months correlation between Avoca and HUMANA is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Avoca LLC and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Avoca LLC 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 Avoca LLC 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 Avoca LLC i.e., Avoca LLC and HUMANA go up and down completely randomly.
Pair Corralation between Avoca LLC and HUMANA
Given the investment horizon of 90 days Avoca LLC is expected to generate 64.9 times less return on investment than HUMANA. But when comparing it to its historical volatility, Avoca LLC is 15.37 times less risky than HUMANA. It trades about 0.02 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
Avoca LLC vs. HUMANA INC
Performance |
| Timeline |
| Avoca LLC |
| HUMANA INC |
Avoca LLC and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avoca LLC and HUMANA
The main advantage of trading using opposite Avoca LLC and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avoca LLC 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.| Avoca LLC vs. Yamaha Motor Co | Avoca LLC vs. Nitto Denko Corp | Avoca LLC vs. Farmers Merchants Bancorp | Avoca LLC vs. Furukawa Electric Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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