Correlation Between Gap, and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between The Gap, and HUMANA INC, you can compare the effects of market volatilities on Gap, 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 Gap, with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and HUMANA.
Diversification Opportunities for Gap, and HUMANA
Very good diversification
The 3 months correlation between Gap, and HUMANA is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Gap, 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 The Gap, 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 Gap, i.e., Gap, and HUMANA go up and down completely randomly.
Pair Corralation between Gap, and HUMANA
Considering the 90-day investment horizon The Gap, is expected to generate 3.66 times more return on investment than HUMANA. However, Gap, is 3.66 times more volatile than HUMANA INC. It trades about 0.13 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.2 per unit of risk. If you would invest 2,210 in The Gap, on September 15, 2024 and sell it today you would earn a total of 219.00 from holding The Gap, or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Gap, vs. HUMANA INC
Performance |
| Timeline |
| Gap, |
| HUMANA INC |
Gap, and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and HUMANA
The main advantage of trading using opposite Gap, and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, 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.The idea behind The Gap, and HUMANA INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| HUMANA vs. The Gap, | HUMANA vs. Sellas Life Sciences | HUMANA vs. Valneva SE ADR | HUMANA vs. Titan Machinery |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |