Correlation Between BNP Paribas and HUMANA
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By analyzing existing cross correlation between BNP Paribas SA and HUMANA INC, you can compare the effects of market volatilities on BNP Paribas 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 BNP Paribas with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and HUMANA.
Diversification Opportunities for BNP Paribas and HUMANA
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BNP and HUMANA is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and BNP Paribas 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 BNP Paribas SA 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 BNP Paribas i.e., BNP Paribas and HUMANA go up and down completely randomly.
Pair Corralation between BNP Paribas and HUMANA
Assuming the 90 days horizon BNP Paribas SA is expected to under-perform the HUMANA. In addition to that, BNP Paribas is 1.96 times more volatile than HUMANA INC. It trades about -0.11 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.15 per unit of volatility. If you would invest 8,325 in HUMANA INC on September 2, 2024 and sell it today you would lose (630.00) from holding HUMANA INC or give up 7.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
BNP Paribas SA vs. HUMANA INC
Performance |
| Timeline |
| BNP Paribas SA |
| HUMANA INC |
BNP Paribas and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and HUMANA
The main advantage of trading using opposite BNP Paribas and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas 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.| BNP Paribas vs. Societe Generale ADR | BNP Paribas vs. Intesa Sanpaolo SpA | BNP Paribas vs. Commerzbank AG PK | BNP Paribas vs. Swedbank AB |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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