Correlation Between First National and HUMANA
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By analyzing existing cross correlation between First National of and HUMANA INC, you can compare the effects of market volatilities on First National 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 First National with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of First National and HUMANA.
Diversification Opportunities for First National and HUMANA
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and HUMANA is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding First National of and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and First National 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 First National of 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 First National i.e., First National and HUMANA go up and down completely randomly.
Pair Corralation between First National and HUMANA
Given the investment horizon of 90 days First National of is expected to generate 2.72 times more return on investment than HUMANA. However, First National is 2.72 times more volatile than HUMANA INC. It trades about 0.0 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.02 per unit of risk. If you would invest 1,240,921 in First National of on September 2, 2024 and sell it today you would lose (30,921) from holding First National of or give up 2.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 83.47% |
| Values | Daily Returns |
First National of vs. HUMANA INC
Performance |
| Timeline |
| First National |
| HUMANA INC |
First National and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First National and HUMANA
The main advantage of trading using opposite First National and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First National 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.| First National vs. Washington Business Bank | First National vs. National Capital Bank | First National vs. Community Heritage Financial | First National vs. Citizens Financial 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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