Correlation Between Cboe UK and Humana
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By analyzing existing cross correlation between Cboe UK Consumer and Humana Inc, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Humana.
Diversification Opportunities for Cboe UK and Humana
Excellent diversification
The 3 months correlation between Cboe and Humana is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and Cboe UK 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 Cboe UK Consumer 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 Cboe UK i.e., Cboe UK and Humana go up and down completely randomly.
Pair Corralation between Cboe UK and Humana
Assuming the 90 days trading horizon Cboe UK is expected to generate 1.37 times less return on investment than Humana. But when comparing it to its historical volatility, Cboe UK Consumer is 2.83 times less risky than Humana. It trades about 0.42 of its potential returns per unit of risk. Humana Inc is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 26,063 in Humana Inc on August 26, 2024 and sell it today you would earn a total of 3,414 from holding Humana Inc or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Humana Inc
Performance |
| Timeline |
Cboe UK and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Humana Inc
Pair trading matchups for Humana
Pair Trading with Cboe UK and Humana
The main advantage of trading using opposite Cboe UK and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. TR Property Investment | Cboe UK vs. Kinnevik Investment AB | Cboe UK vs. Federal Realty Investment | Cboe UK vs. Playtech Plc |
| Humana vs. CAP LEASE AVIATION | Humana vs. Cairn Homes PLC | Humana vs. Martin Marietta Materials | Humana vs. Ecclesiastical Insurance Office |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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