Correlation Between Ocean Park and Humana
Can any of the company-specific risk be diversified away by investing in both Ocean Park and Humana at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ocean Park and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Park High and Humana Inc, you can compare the effects of market volatilities on Ocean Park 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 Ocean Park with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Park and Humana.
Diversification Opportunities for Ocean Park and Humana
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ocean and Humana is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Park High and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and Ocean Park 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 Ocean Park High 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 Ocean Park i.e., Ocean Park and Humana go up and down completely randomly.
Pair Corralation between Ocean Park and Humana
Given the investment horizon of 90 days Ocean Park is expected to generate 12.11 times less return on investment than Humana. But when comparing it to its historical volatility, Ocean Park High is 14.27 times less risky than Humana. It trades about 0.25 of its potential returns per unit of risk. Humana Inc is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 26,071 in Humana Inc on September 2, 2024 and sell it today you would earn a total of 3,567 from holding Humana Inc or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocean Park High vs. Humana Inc
Performance |
| Timeline |
| Ocean Park High |
| Humana Inc |
Ocean Park and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Park and Humana
The main advantage of trading using opposite Ocean Park and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Park 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.| Ocean Park vs. Valued Advisers Trust | Ocean Park vs. Columbia Diversified Fixed | Ocean Park vs. Principal Exchange Traded Funds | Ocean Park vs. Doubleline Etf Trust |
| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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