Correlation Between Max Resource and HUMANA
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By analyzing existing cross correlation between Max Resource Corp and HUMANA INC, you can compare the effects of market volatilities on Max Resource 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 Max Resource with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Max Resource and HUMANA.
Diversification Opportunities for Max Resource and HUMANA
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Max and HUMANA is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Max Resource Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Max Resource 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 Max Resource 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 Max Resource i.e., Max Resource and HUMANA go up and down completely randomly.
Pair Corralation between Max Resource and HUMANA
Assuming the 90 days horizon Max Resource Corp is expected to generate 18.97 times more return on investment than HUMANA. However, Max Resource is 18.97 times more volatile than HUMANA INC. It trades about 0.02 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.01 per unit of risk. If you would invest 9.00 in Max Resource Corp on September 4, 2024 and sell it today you would lose (5.40) from holding Max Resource Corp or give up 60.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.76% |
| Values | Daily Returns |
Max Resource Corp vs. HUMANA INC
Performance |
| Timeline |
| Max Resource Corp |
| HUMANA INC |
Max Resource and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Max Resource and HUMANA
The main advantage of trading using opposite Max Resource and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Max Resource 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.| Max Resource vs. Western Alaska Minerals | Max Resource vs. P2 Gold | Max Resource vs. CMC Metals | Max Resource vs. GoGold Resources |
| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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