Correlation Between Nuvalent and HUMANA
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By analyzing existing cross correlation between Nuvalent and HUMANA INC, you can compare the effects of market volatilities on Nuvalent 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 Nuvalent with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuvalent and HUMANA.
Diversification Opportunities for Nuvalent and HUMANA
Average diversification
The 3 months correlation between Nuvalent and HUMANA is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nuvalent and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Nuvalent 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 Nuvalent 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 Nuvalent i.e., Nuvalent and HUMANA go up and down completely randomly.
Pair Corralation between Nuvalent and HUMANA
Given the investment horizon of 90 days Nuvalent is expected to under-perform the HUMANA. In addition to that, Nuvalent is 3.51 times more volatile than HUMANA INC. It trades about -0.39 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.15 per unit of volatility. If you would invest 8,197 in HUMANA INC on October 8, 2024 and sell it today you would lose (162.00) from holding HUMANA INC or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuvalent vs. HUMANA INC
Performance |
| Timeline |
| Nuvalent |
| HUMANA INC |
Nuvalent and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuvalent and HUMANA
The main advantage of trading using opposite Nuvalent and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuvalent 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.| Nuvalent vs. Arcellx | Nuvalent vs. Vaxcyte | Nuvalent vs. Viridian Therapeutics | Nuvalent vs. Ventyx Biosciences |
| HUMANA vs. The Cheesecake Factory | HUMANA vs. Oasis Hotel Resort | HUMANA vs. Cardinal Health | HUMANA vs. Definitive Healthcare Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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