Correlation Between Central Securities and HUMANA
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By analyzing existing cross correlation between Central Securities and HUMANA INC, you can compare the effects of market volatilities on Central Securities 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 Central Securities with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Securities and HUMANA.
Diversification Opportunities for Central Securities and HUMANA
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Central and HUMANA is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Central Securities and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Central Securities 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 Central Securities 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 Central Securities i.e., Central Securities and HUMANA go up and down completely randomly.
Pair Corralation between Central Securities and HUMANA
Considering the 90-day investment horizon Central Securities is expected to generate 0.76 times more return on investment than HUMANA. However, Central Securities is 1.31 times less risky than HUMANA. It trades about 0.19 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.21 per unit of risk. If you would invest 4,523 in Central Securities on August 31, 2024 and sell it today you would earn a total of 159.00 from holding Central Securities or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Central Securities vs. HUMANA INC
Performance |
| Timeline |
| Central Securities |
| HUMANA INC |
Central Securities and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Securities and HUMANA
The main advantage of trading using opposite Central Securities and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Securities 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.| Central Securities vs. HUMANA INC | Central Securities vs. SCOR PK | Central Securities vs. Aquagold International | Central Securities vs. Thrivent High Yield |
| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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