Correlation Between Electrocore LLC and Humana
Can any of the company-specific risk be diversified away by investing in both Electrocore LLC 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 Electrocore LLC and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrocore LLC and Humana Inc, you can compare the effects of market volatilities on Electrocore LLC 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 Electrocore LLC with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrocore LLC and Humana.
Diversification Opportunities for Electrocore LLC and Humana
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Electrocore and Humana is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Electrocore LLC and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and Electrocore LLC 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 Electrocore LLC 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 Electrocore LLC i.e., Electrocore LLC and Humana go up and down completely randomly.
Pair Corralation between Electrocore LLC and Humana
Given the investment horizon of 90 days Electrocore LLC is expected to under-perform the Humana. In addition to that, Electrocore LLC is 1.57 times more volatile than Humana Inc. It trades about -0.05 of its total potential returns per unit of risk. Humana Inc is currently generating about 0.37 per unit of volatility. If you would invest 25,371 in Humana Inc on November 1, 2024 and sell it today you would earn a total of 4,168 from holding Humana Inc or generate 16.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Electrocore LLC vs. Humana Inc
Performance |
| Timeline |
| Electrocore LLC |
| Humana Inc |
Electrocore LLC and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrocore LLC and Humana
The main advantage of trading using opposite Electrocore LLC and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrocore LLC 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.| Electrocore LLC vs. STRATA Skin Sciences | Electrocore LLC vs. Sight Sciences | Electrocore LLC vs. Neuropace | Electrocore LLC vs. IRIDEX |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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