Correlation Between Nikon Corp and HUMANA
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By analyzing existing cross correlation between Nikon Corp and HUMANA INC, you can compare the effects of market volatilities on Nikon Corp 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 Nikon Corp with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nikon Corp and HUMANA.
Diversification Opportunities for Nikon Corp and HUMANA
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nikon and HUMANA is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nikon Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Nikon Corp 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 Nikon 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 Nikon Corp i.e., Nikon Corp and HUMANA go up and down completely randomly.
Pair Corralation between Nikon Corp and HUMANA
Assuming the 90 days horizon Nikon Corp is expected to generate 4.32 times more return on investment than HUMANA. However, Nikon Corp is 4.32 times more volatile than HUMANA INC. It trades about 0.08 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.11 per unit of risk. If you would invest 1,045 in Nikon Corp on September 4, 2024 and sell it today you would earn a total of 126.00 from holding Nikon Corp or generate 12.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
Nikon Corp vs. HUMANA INC
Performance |
| Timeline |
| Nikon Corp |
| HUMANA INC |
Nikon Corp and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nikon Corp and HUMANA
The main advantage of trading using opposite Nikon Corp and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nikon Corp 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.| Nikon Corp vs. HUMANA INC | Nikon Corp vs. Aquagold International | Nikon Corp vs. Barloworld Ltd ADR | Nikon Corp vs. Morningstar Unconstrained Allocation |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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