Correlation Between Salient International and HUMANA
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By analyzing existing cross correlation between Salient International Real and HUMANA INC, you can compare the effects of market volatilities on Salient International 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 Salient International with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salient International and HUMANA.
Diversification Opportunities for Salient International and HUMANA
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Salient and HUMANA is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Salient International Real and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Salient International 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 Salient International Real 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 Salient International i.e., Salient International and HUMANA go up and down completely randomly.
Pair Corralation between Salient International and HUMANA
Assuming the 90 days horizon Salient International Real is expected to generate 1.32 times more return on investment than HUMANA. However, Salient International is 1.32 times more volatile than HUMANA INC. It trades about 0.06 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.03 per unit of risk. If you would invest 1,210 in Salient International Real on September 1, 2024 and sell it today you would earn a total of 117.00 from holding Salient International Real or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.35% |
| Values | Daily Returns |
Salient International Real vs. HUMANA INC
Performance |
| Timeline |
| Salient International |
| HUMANA INC |
Salient International and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salient International and HUMANA
The main advantage of trading using opposite Salient International and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient International 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.| Salient International vs. Salient Tactical Plus | Salient International vs. Salient Tactical Plus | Salient International vs. Salient Tactical Growth | Salient International vs. Salient Tactical Growth |
| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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