Correlation Between Structured Products and HUMANA
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By analyzing existing cross correlation between Structured Products Corp and HUMANA INC, you can compare the effects of market volatilities on Structured Products 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 Structured Products with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Structured Products and HUMANA.
Diversification Opportunities for Structured Products and HUMANA
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Structured and HUMANA is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Structured Products Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Structured Products 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 Structured Products Corp 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 Structured Products i.e., Structured Products and HUMANA go up and down completely randomly.
Pair Corralation between Structured Products and HUMANA
Considering the 90-day investment horizon Structured Products is expected to generate 169.4 times less return on investment than HUMANA. But when comparing it to its historical volatility, Structured Products Corp is 63.22 times less risky than HUMANA. It trades about 0.03 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,917 in HUMANA INC on August 31, 2024 and sell it today you would lose (222.00) from holding HUMANA INC or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Structured Products Corp vs. HUMANA INC
Performance |
| Timeline |
| Structured Products Corp |
| HUMANA INC |
Structured Products and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Structured Products and HUMANA
The main advantage of trading using opposite Structured Products and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Structured Products 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.| Structured Products vs. HUMANA INC | Structured Products vs. SCOR PK | Structured Products vs. Aquagold International | Structured Products vs. Thrivent High Yield |
| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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