Correlation Between Element Global and HUMANA
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By analyzing existing cross correlation between Element Global and HUMANA INC, you can compare the effects of market volatilities on Element Global 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 Element Global with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Element Global and HUMANA.
Diversification Opportunities for Element Global and HUMANA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Element and HUMANA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Element Global and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Element Global 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 Element Global 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 Element Global i.e., Element Global and HUMANA go up and down completely randomly.
Pair Corralation between Element Global and HUMANA
Given the investment horizon of 90 days Element Global is expected to under-perform the HUMANA. In addition to that, Element Global is 10.24 times more volatile than HUMANA INC. It trades about -0.06 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.04 per unit of volatility. If you would invest 8,172 in HUMANA INC on September 12, 2024 and sell it today you would lose (477.00) from holding HUMANA INC or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.18% |
| Values | Daily Returns |
Element Global vs. HUMANA INC
Performance |
| Timeline |
| Element Global |
| HUMANA INC |
Element Global and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Element Global and HUMANA
The main advantage of trading using opposite Element Global and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Element Global 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.| Element Global vs. HUMANA INC | Element Global vs. Barloworld Ltd ADR | Element Global vs. Morningstar Unconstrained Allocation | Element Global vs. Thrivent High Yield |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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