Correlation Between Goldman Sachs and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Goldman Sachs International and HUMANA INC, you can compare the effects of market volatilities on Goldman Sachs 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 Goldman Sachs with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and HUMANA.
Diversification Opportunities for Goldman Sachs and HUMANA
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goldman and HUMANA is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs International and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs i.e., Goldman Sachs and HUMANA go up and down completely randomly.
Pair Corralation between Goldman Sachs and HUMANA
Assuming the 90 days horizon Goldman Sachs is expected to generate 134.52 times less return on investment than HUMANA. But when comparing it to its historical volatility, Goldman Sachs International is 96.27 times less risky than HUMANA. It trades about 0.05 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,122 in HUMANA INC on November 27, 2024 and sell it today you would lose (223.00) from holding HUMANA INC or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.75% |
| Values | Daily Returns |
Goldman Sachs International vs. HUMANA INC
Performance |
| Timeline |
| Goldman Sachs Intern |
| HUMANA INC |
Goldman Sachs and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and HUMANA
The main advantage of trading using opposite Goldman Sachs and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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.| Goldman Sachs vs. T Rowe Price | Goldman Sachs vs. Aqr Global Macro | Goldman Sachs vs. Ab Global Bond | Goldman Sachs vs. Rbc Global Equity |
| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |