Correlation Between Johnson Matthey and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Johnson Matthey PLC and HUMANA INC, you can compare the effects of market volatilities on Johnson Matthey 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 Johnson Matthey with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Matthey and HUMANA.
Diversification Opportunities for Johnson Matthey and HUMANA
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Johnson and HUMANA is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Matthey PLC and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Johnson Matthey 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 Johnson Matthey PLC 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 Johnson Matthey i.e., Johnson Matthey and HUMANA go up and down completely randomly.
Pair Corralation between Johnson Matthey and HUMANA
Assuming the 90 days horizon Johnson Matthey PLC is expected to under-perform the HUMANA. In addition to that, Johnson Matthey is 2.22 times more volatile than HUMANA INC. It trades about -0.2 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.22 per unit of volatility. If you would invest 8,403 in HUMANA INC on August 30, 2024 and sell it today you would lose (708.00) from holding HUMANA INC or give up 8.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.35% |
| Values | Daily Returns |
Johnson Matthey PLC vs. HUMANA INC
Performance |
| Timeline |
| Johnson Matthey PLC |
| HUMANA INC |
Johnson Matthey and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Matthey and HUMANA
The main advantage of trading using opposite Johnson Matthey and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Matthey 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.| Johnson Matthey vs. Sensient Technologies | Johnson Matthey vs. Koppers Holdings | Johnson Matthey vs. Axalta Coating Systems | Johnson Matthey vs. Select Energy Services |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |