Correlation Between GE Vernova and HUMANA
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By analyzing existing cross correlation between GE Vernova LLC and HUMANA INC, you can compare the effects of market volatilities on GE Vernova 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 GE Vernova with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and HUMANA.
Diversification Opportunities for GE Vernova and HUMANA
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between GEV and HUMANA is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and GE Vernova 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 GE Vernova 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 GE Vernova i.e., GE Vernova and HUMANA go up and down completely randomly.
Pair Corralation between GE Vernova and HUMANA
Considering the 90-day investment horizon GE Vernova LLC is expected to under-perform the HUMANA. In addition to that, GE Vernova is 3.61 times more volatile than HUMANA INC. It trades about -0.14 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.1 per unit of volatility. If you would invest 8,067 in HUMANA INC on November 29, 2024 and sell it today you would lose (168.00) from holding HUMANA INC or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GE Vernova LLC vs. HUMANA INC
Performance |
| Timeline |
| GE Vernova LLC |
| HUMANA INC |
GE Vernova and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and HUMANA
The main advantage of trading using opposite GE Vernova and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova 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.| GE Vernova vs. Rocky Brands | GE Vernova vs. Marimaca Copper Corp | GE Vernova vs. Office Properties Income | GE Vernova vs. Intuitive Surgical |
| HUMANA vs. SNDL Inc | HUMANA vs. Compania Cervecerias Unidas | HUMANA vs. Monster Beverage Corp | HUMANA vs. Keurig Dr Pepper |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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