Correlation Between ArcelorMittal and HUMANA
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By analyzing existing cross correlation between ArcelorMittal SA ADR and HUMANA INC, you can compare the effects of market volatilities on ArcelorMittal 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 ArcelorMittal with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ArcelorMittal and HUMANA.
Diversification Opportunities for ArcelorMittal and HUMANA
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ArcelorMittal and HUMANA is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding ArcelorMittal SA ADR and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and ArcelorMittal 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 ArcelorMittal SA ADR 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 ArcelorMittal i.e., ArcelorMittal and HUMANA go up and down completely randomly.
Pair Corralation between ArcelorMittal and HUMANA
Allowing for the 90-day total investment horizon ArcelorMittal SA ADR is expected to under-perform the HUMANA. But the stock apears to be less risky and, when comparing its historical volatility, ArcelorMittal SA ADR is 45.0 times less risky than HUMANA. The stock trades about 0.0 of its potential returns per unit of risk. The HUMANA INC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8,039 in HUMANA INC on August 27, 2024 and sell it today you would lose (4.00) from holding HUMANA INC or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.29% |
| Values | Daily Returns |
ArcelorMittal SA ADR vs. HUMANA INC
Performance |
| Timeline |
| ArcelorMittal SA ADR |
| HUMANA INC |
ArcelorMittal and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ArcelorMittal and HUMANA
The main advantage of trading using opposite ArcelorMittal and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ArcelorMittal 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.| ArcelorMittal vs. Olympic Steel | ArcelorMittal vs. Ternium SA ADR | ArcelorMittal vs. Gerdau SA ADR | ArcelorMittal vs. POSCO Holdings |
| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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