Correlation Between Globalink Investment and HUMANA
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By analyzing existing cross correlation between Globalink Investment and HUMANA INC, you can compare the effects of market volatilities on Globalink Investment 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 Globalink Investment with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globalink Investment and HUMANA.
Diversification Opportunities for Globalink Investment and HUMANA
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globalink and HUMANA is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Globalink Investment and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Globalink Investment 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 Globalink Investment 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 Globalink Investment i.e., Globalink Investment and HUMANA go up and down completely randomly.
Pair Corralation between Globalink Investment and HUMANA
Given the investment horizon of 90 days Globalink Investment is expected to generate 235.05 times less return on investment than HUMANA. But when comparing it to its historical volatility, Globalink Investment is 186.56 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 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 Against |
| Strength | Very Weak |
| Accuracy | 98.01% |
| Values | Daily Returns |
Globalink Investment vs. HUMANA INC
Performance |
| Timeline |
| Globalink Investment |
| HUMANA INC |
Globalink Investment and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globalink Investment and HUMANA
The main advantage of trading using opposite Globalink Investment and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globalink Investment 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.| Globalink Investment vs. HUMANA INC | Globalink Investment vs. Barloworld Ltd ADR | Globalink Investment vs. Morningstar Unconstrained Allocation | Globalink Investment 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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