Correlation Between Investec and HUMANA
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By analyzing existing cross correlation between Investec Group and HUMANA INC, you can compare the effects of market volatilities on Investec 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 Investec with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec and HUMANA.
Diversification Opportunities for Investec and HUMANA
Good diversification
The 3 months correlation between Investec and HUMANA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Investec Group and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Investec 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 Investec Group 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 Investec i.e., Investec and HUMANA go up and down completely randomly.
Pair Corralation between Investec and HUMANA
Assuming the 90 days horizon Investec Group is expected to generate 0.8 times more return on investment than HUMANA. However, Investec Group is 1.25 times less risky than HUMANA. It trades about 0.21 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.2 per unit of risk. If you would invest 1,062 in Investec Group on September 20, 2024 and sell it today you would earn a total of 42.00 from holding Investec Group or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Group vs. HUMANA INC
Performance |
| Timeline |
| Investec Group |
| HUMANA INC |
Investec and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec and HUMANA
The main advantage of trading using opposite Investec and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec 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.| Investec vs. SPENN Technology AS | Investec vs. OFX Group Ltd | Investec vs. HUMANA INC | Investec vs. Barloworld Ltd ADR |
| HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Vita Coco | HUMANA vs. Compania Cervecerias Unidas | HUMANA vs. Westinghouse Air Brake |
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 CEOs Directory module to screen CEOs from public companies around the world.
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