Correlation Between MACOM Technology and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between MACOM Technology Solutions and HUMANA INC, you can compare the effects of market volatilities on MACOM Technology 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 MACOM Technology with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MACOM Technology and HUMANA.
Diversification Opportunities for MACOM Technology and HUMANA
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MACOM and HUMANA is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding MACOM Technology Solutions and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and MACOM Technology 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 MACOM Technology Solutions 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 MACOM Technology i.e., MACOM Technology and HUMANA go up and down completely randomly.
Pair Corralation between MACOM Technology and HUMANA
Given the investment horizon of 90 days MACOM Technology Solutions is expected to generate 4.06 times more return on investment than HUMANA. However, MACOM Technology is 4.06 times more volatile than HUMANA INC. It trades about 0.09 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.05 per unit of risk. If you would invest 10,424 in MACOM Technology Solutions on September 12, 2024 and sell it today you would earn a total of 3,076 from holding MACOM Technology Solutions or generate 29.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
MACOM Technology Solutions vs. HUMANA INC
Performance |
| Timeline |
| MACOM Technology Sol |
| HUMANA INC |
MACOM Technology and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MACOM Technology and HUMANA
The main advantage of trading using opposite MACOM Technology and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MACOM Technology 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.| MACOM Technology vs. NVIDIA | MACOM Technology vs. Taiwan Semiconductor Manufacturing | MACOM Technology vs. Micron Technology | MACOM Technology vs. Qualcomm 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |