Correlation Between MSA Safety and HUMANA
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By analyzing existing cross correlation between MSA Safety and HUMANA INC, you can compare the effects of market volatilities on MSA Safety 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 MSA Safety with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSA Safety and HUMANA.
Diversification Opportunities for MSA Safety and HUMANA
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MSA and HUMANA is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding MSA Safety and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and MSA Safety 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 MSA Safety 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 MSA Safety i.e., MSA Safety and HUMANA go up and down completely randomly.
Pair Corralation between MSA Safety and HUMANA
Considering the 90-day investment horizon MSA Safety is expected to generate 1.15 times more return on investment than HUMANA. However, MSA Safety is 1.15 times more volatile than HUMANA INC. It trades about 0.23 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.18 per unit of risk. If you would invest 16,315 in MSA Safety on September 2, 2024 and sell it today you would earn a total of 1,066 from holding MSA Safety or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
MSA Safety vs. HUMANA INC
Performance |
| Timeline |
| MSA Safety |
| HUMANA INC |
MSA Safety and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSA Safety and HUMANA
The main advantage of trading using opposite MSA Safety and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSA Safety 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.| MSA Safety vs. Allegion PLC | MSA Safety vs. Resideo Technologies | MSA Safety vs. NL Industries | MSA Safety vs. Brady |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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