Correlation Between Noble Plc and HUMANA
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By analyzing existing cross correlation between Noble plc and HUMANA INC, you can compare the effects of market volatilities on Noble Plc 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 Noble Plc with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Noble Plc and HUMANA.
Diversification Opportunities for Noble Plc and HUMANA
Modest diversification
The 3 months correlation between Noble and HUMANA is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Noble plc and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Noble Plc 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 Noble plc 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 Noble Plc i.e., Noble Plc and HUMANA go up and down completely randomly.
Pair Corralation between Noble Plc and HUMANA
Allowing for the 90-day total investment horizon Noble Plc is expected to generate 226.59 times less return on investment than HUMANA. But when comparing it to its historical volatility, Noble plc is 35.12 times less risky than HUMANA. It trades about 0.01 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,074 in HUMANA INC on September 3, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
Noble plc vs. HUMANA INC
Performance |
| Timeline |
| Noble plc |
| HUMANA INC |
Noble Plc and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Noble Plc and HUMANA
The main advantage of trading using opposite Noble Plc and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noble Plc 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.| Noble Plc vs. Seadrill Limited | Noble Plc vs. Borr Drilling | Noble Plc vs. Patterson UTI Energy | Noble Plc vs. Transocean |
| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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