Correlation Between Oak Ridge and HUMANA
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By analyzing existing cross correlation between Oak Ridge Financial and HUMANA INC, you can compare the effects of market volatilities on Oak Ridge 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 Oak Ridge with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oak Ridge and HUMANA.
Diversification Opportunities for Oak Ridge and HUMANA
Excellent diversification
The 3 months correlation between Oak and HUMANA is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Oak Ridge Financial and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Oak Ridge 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 Oak Ridge Financial 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 Oak Ridge i.e., Oak Ridge and HUMANA go up and down completely randomly.
Pair Corralation between Oak Ridge and HUMANA
Given the investment horizon of 90 days Oak Ridge Financial is expected to generate 0.76 times more return on investment than HUMANA. However, Oak Ridge Financial is 1.32 times less risky than HUMANA. It trades about 0.41 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.21 per unit of risk. If you would invest 1,918 in Oak Ridge Financial on September 1, 2024 and sell it today you would earn a total of 157.00 from holding Oak Ridge Financial or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Oak Ridge Financial vs. HUMANA INC
Performance |
| Timeline |
| Oak Ridge Financial |
| HUMANA INC |
Oak Ridge and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oak Ridge and HUMANA
The main advantage of trading using opposite Oak Ridge and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oak Ridge 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.| Oak Ridge vs. HUMANA INC | Oak Ridge vs. SCOR PK | Oak Ridge vs. Aquagold International | Oak Ridge vs. Thrivent High Yield |
| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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