Correlation Between Kronos Advanced and HUMANA
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By analyzing existing cross correlation between Kronos Advanced Technologies and HUMANA INC, you can compare the effects of market volatilities on Kronos Advanced 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 Kronos Advanced with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kronos Advanced and HUMANA.
Diversification Opportunities for Kronos Advanced and HUMANA
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kronos and HUMANA is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kronos Advanced Technologies and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Kronos Advanced 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 Kronos Advanced Technologies 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 Kronos Advanced i.e., Kronos Advanced and HUMANA go up and down completely randomly.
Pair Corralation between Kronos Advanced and HUMANA
Given the investment horizon of 90 days Kronos Advanced is expected to generate 4.4 times less return on investment than HUMANA. But when comparing it to its historical volatility, Kronos Advanced Technologies is 4.87 times less risky than HUMANA. It trades about 0.08 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,891 in HUMANA INC on September 12, 2024 and sell it today you would lose (196.00) from holding HUMANA INC or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.01% |
| Values | Daily Returns |
Kronos Advanced Technologies vs. HUMANA INC
Performance |
| Timeline |
| Kronos Advanced Tech |
| HUMANA INC |
Kronos Advanced and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kronos Advanced and HUMANA
The main advantage of trading using opposite Kronos Advanced and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kronos Advanced 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.| Kronos Advanced vs. HUMANA INC | Kronos Advanced vs. Barloworld Ltd ADR | Kronos Advanced vs. Morningstar Unconstrained Allocation | Kronos Advanced 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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