Correlation Between Healthcare and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Healthcare AI Acquisition and HUMANA INC, you can compare the effects of market volatilities on Healthcare 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 Healthcare with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and HUMANA.
Diversification Opportunities for Healthcare and HUMANA
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Healthcare and HUMANA is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare AI Acquisition and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Healthcare 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 Healthcare AI 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 Healthcare i.e., Healthcare and HUMANA go up and down completely randomly.
Pair Corralation between Healthcare and HUMANA
Assuming the 90 days horizon Healthcare AI Acquisition is expected to generate 1.77 times more return on investment than HUMANA. However, Healthcare is 1.77 times more volatile than HUMANA INC. It trades about 0.14 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 per unit of risk. If you would invest 6.00 in Healthcare AI Acquisition on September 12, 2024 and sell it today you would lose (4.83) from holding Healthcare AI Acquisition or give up 80.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 55.05% |
| Values | Daily Returns |
Healthcare AI Acquisition vs. HUMANA INC
Performance |
| Timeline |
| Healthcare AI Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| HUMANA INC |
Healthcare and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and HUMANA
The main advantage of trading using opposite Healthcare and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare 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.| Healthcare vs. HUMANA INC | Healthcare vs. Barloworld Ltd ADR | Healthcare vs. Morningstar Unconstrained Allocation | Healthcare 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| 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 | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |