Correlation Between Canfor Pulp and HUMANA
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By analyzing existing cross correlation between Canfor Pulp Products and HUMANA INC, you can compare the effects of market volatilities on Canfor Pulp 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 Canfor Pulp with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canfor Pulp and HUMANA.
Diversification Opportunities for Canfor Pulp and HUMANA
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canfor and HUMANA is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Canfor Pulp Products and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Canfor Pulp 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 Canfor Pulp Products 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 Canfor Pulp i.e., Canfor Pulp and HUMANA go up and down completely randomly.
Pair Corralation between Canfor Pulp and HUMANA
Assuming the 90 days horizon Canfor Pulp Products is expected to under-perform the HUMANA. In addition to that, Canfor Pulp is 1.17 times more volatile than HUMANA INC. It trades about -0.27 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 8,088 in HUMANA INC on September 1, 2024 and sell it today you would lose (393.00) from holding HUMANA INC or give up 4.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Canfor Pulp Products vs. HUMANA INC
Performance |
| Timeline |
| Canfor Pulp Products |
| HUMANA INC |
Canfor Pulp and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canfor Pulp and HUMANA
The main advantage of trading using opposite Canfor Pulp and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canfor Pulp 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.| Canfor Pulp vs. South32 Limited | Canfor Pulp vs. NioCorp Developments Ltd | Canfor Pulp vs. HUMANA INC | Canfor Pulp vs. SCOR PK |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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