Correlation Between Finning International and HUMANA
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By analyzing existing cross correlation between Finning International and HUMANA INC, you can compare the effects of market volatilities on Finning International 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 Finning International with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finning International and HUMANA.
Diversification Opportunities for Finning International and HUMANA
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Finning and HUMANA is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Finning International and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Finning International 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 Finning International 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 Finning International i.e., Finning International and HUMANA go up and down completely randomly.
Pair Corralation between Finning International and HUMANA
Assuming the 90 days horizon Finning International is expected to under-perform the HUMANA. But the pink sheet apears to be less risky and, when comparing its historical volatility, Finning International is 36.17 times less risky than HUMANA. The pink sheet trades about -0.01 of its potential returns per unit of risk. The HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,891 in HUMANA INC on September 12, 2024 and sell it today you would lose (196.00) from holding HUMANA INC or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.36% |
| Values | Daily Returns |
Finning International vs. HUMANA INC
Performance |
| Timeline |
| Finning International |
| HUMANA INC |
Finning International and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finning International and HUMANA
The main advantage of trading using opposite Finning International and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finning International 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.| Finning International vs. HUMANA INC | Finning International vs. Barloworld Ltd ADR | Finning International vs. Morningstar Unconstrained Allocation | Finning International 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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