Correlation Between ChampionX and HUMANA
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By analyzing existing cross correlation between ChampionX and HUMANA INC, you can compare the effects of market volatilities on ChampionX 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 ChampionX with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and HUMANA.
Diversification Opportunities for ChampionX and HUMANA
Good diversification
The 3 months correlation between ChampionX and HUMANA is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and ChampionX 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 ChampionX 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 ChampionX i.e., ChampionX and HUMANA go up and down completely randomly.
Pair Corralation between ChampionX and HUMANA
Considering the 90-day investment horizon ChampionX is expected to under-perform the HUMANA. In addition to that, ChampionX is 2.18 times more volatile than HUMANA INC. It trades about -0.08 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.16 per unit of volatility. If you would invest 8,198 in HUMANA INC on September 13, 2024 and sell it today you would lose (503.00) from holding HUMANA INC or give up 6.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.02% |
| Values | Daily Returns |
ChampionX vs. HUMANA INC
Performance |
| Timeline |
| ChampionX |
| HUMANA INC |
ChampionX and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChampionX and HUMANA
The main advantage of trading using opposite ChampionX and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX 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.| ChampionX vs. Newpark Resources | ChampionX vs. Tenaris SA ADR | ChampionX vs. Dawson Geophysical | ChampionX vs. Bristow Group |
| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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