Correlation Between Bayport International and HUMANA
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By analyzing existing cross correlation between Bayport International Holdings and HUMANA INC, you can compare the effects of market volatilities on Bayport International 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 Bayport International with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayport International and HUMANA.
Diversification Opportunities for Bayport International and HUMANA
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bayport and HUMANA is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bayport International Holdings and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Bayport International 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 Bayport International 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 Bayport International i.e., Bayport International and HUMANA go up and down completely randomly.
Pair Corralation between Bayport International and HUMANA
Given the investment horizon of 90 days Bayport International Holdings is expected to under-perform the HUMANA. In addition to that, Bayport International is 12.59 times more volatile than HUMANA INC. It trades about -0.21 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.21 per unit of volatility. If you would invest 8,090 in HUMANA INC on August 31, 2024 and sell it today you would lose (395.00) from holding HUMANA INC or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bayport International Holdings vs. HUMANA INC
Performance |
| Timeline |
| Bayport International |
| HUMANA INC |
Bayport International and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayport International and HUMANA
The main advantage of trading using opposite Bayport International and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayport International 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.| Bayport International vs. HUMANA INC | Bayport International vs. SCOR PK | Bayport International vs. Aquagold International | Bayport International vs. Thrivent High Yield |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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