Correlation Between Carnival Plc and HUMANA
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By analyzing existing cross correlation between Carnival plc and HUMANA INC, you can compare the effects of market volatilities on Carnival Plc 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 Carnival Plc with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnival Plc and HUMANA.
Diversification Opportunities for Carnival Plc and HUMANA
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carnival and HUMANA is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Carnival plc and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Carnival Plc 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 Carnival plc 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 Carnival Plc i.e., Carnival Plc and HUMANA go up and down completely randomly.
Pair Corralation between Carnival Plc and HUMANA
Assuming the 90 days horizon Carnival plc is expected to generate 1.61 times more return on investment than HUMANA. However, Carnival Plc is 1.61 times more volatile than HUMANA INC. It trades about 0.12 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.19 per unit of risk. If you would invest 2,183 in Carnival plc on September 12, 2024 and sell it today you would earn a total of 97.00 from holding Carnival plc or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnival plc vs. HUMANA INC
Performance |
| Timeline |
| Carnival plc |
| HUMANA INC |
Carnival Plc and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnival Plc and HUMANA
The main advantage of trading using opposite Carnival Plc and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnival Plc 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.| Carnival Plc vs. Oriental Land Co | Carnival Plc vs. Oriental Land Co | Carnival Plc vs. ANTA Sports Products | Carnival Plc vs. ANTA Sports Products |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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