Correlation Between Cannae Holdings and HUMANA
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By analyzing existing cross correlation between Cannae Holdings and HUMANA INC, you can compare the effects of market volatilities on Cannae 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 Cannae Holdings with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannae Holdings and HUMANA.
Diversification Opportunities for Cannae Holdings and HUMANA
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cannae and HUMANA is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cannae Holdings and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Cannae 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 Cannae Holdings 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 Cannae Holdings i.e., Cannae Holdings and HUMANA go up and down completely randomly.
Pair Corralation between Cannae Holdings and HUMANA
Given the investment horizon of 90 days Cannae Holdings is expected to generate 1.52 times more return on investment than HUMANA. However, Cannae Holdings is 1.52 times more volatile than HUMANA INC. It trades about -0.02 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.09 per unit of risk. If you would invest 1,934 in Cannae Holdings on November 27, 2024 and sell it today you would lose (15.00) from holding Cannae Holdings or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cannae Holdings vs. HUMANA INC
Performance |
| Timeline |
| Cannae Holdings |
| HUMANA INC |
Cannae Holdings and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cannae Holdings and HUMANA
The main advantage of trading using opposite Cannae Holdings and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannae 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.| Cannae Holdings vs. Adtalem Global Education | Cannae Holdings vs. Hamilton Lane | Cannae Holdings vs. ConnectOne Bancorp |
| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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