Correlation Between CMG Holdings and HUMANA
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By analyzing existing cross correlation between CMG Holdings Group and HUMANA INC, you can compare the effects of market volatilities on CMG Holdings 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 CMG Holdings with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Holdings and HUMANA.
Diversification Opportunities for CMG Holdings and HUMANA
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CMG and HUMANA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding CMG Holdings Group and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and CMG Holdings 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 CMG Holdings Group 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 CMG Holdings i.e., CMG Holdings and HUMANA go up and down completely randomly.
Pair Corralation between CMG Holdings and HUMANA
Given the investment horizon of 90 days CMG Holdings Group is expected to generate 20.04 times more return on investment than HUMANA. However, CMG Holdings is 20.04 times more volatile than HUMANA INC. It trades about 0.1 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.04 per unit of risk. If you would invest 0.18 in CMG Holdings Group on November 10, 2024 and sell it today you would earn a total of 0.02 from holding CMG Holdings Group or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
CMG Holdings Group vs. HUMANA INC
Performance |
| Timeline |
| CMG Holdings Group |
| HUMANA INC |
CMG Holdings and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMG Holdings and HUMANA
The main advantage of trading using opposite CMG Holdings and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMG Holdings 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.| CMG Holdings vs. Tautachrome | CMG Holdings vs. VNUE Inc | CMG Holdings vs. South Beach Spirits | CMG Holdings vs. North Bay Resources |
| HUMANA vs. Teleflex Incorporated | HUMANA vs. Western Digital | HUMANA vs. Amgen Inc | HUMANA vs. Arrow Electronics |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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