Correlation Between Golden Star and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Golden Star Acquisition and HUMANA INC, you can compare the effects of market volatilities on Golden Star 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 Golden Star with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Star and HUMANA.
Diversification Opportunities for Golden Star and HUMANA
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and HUMANA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Golden Star Acquisition and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Golden Star 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 Golden Star Acquisition 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 Golden Star i.e., Golden Star and HUMANA go up and down completely randomly.
Pair Corralation between Golden Star and HUMANA
Assuming the 90 days horizon Golden Star Acquisition is expected to generate 0.65 times more return on investment than HUMANA. However, Golden Star Acquisition is 1.53 times less risky than HUMANA. It trades about 0.05 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.19 per unit of risk. If you would invest 1,140 in Golden Star Acquisition on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Golden Star Acquisition or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Star Acquisition vs. HUMANA INC
Performance |
| Timeline |
| Golden Star Acquisition |
| HUMANA INC |
Golden Star and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Star and HUMANA
The main advantage of trading using opposite Golden Star and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Star 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.| Golden Star vs. HUMANA INC | Golden Star vs. Barloworld Ltd ADR | Golden Star vs. Morningstar Unconstrained Allocation | Golden Star 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |