Correlation Between New Ulm and HUMANA
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By analyzing existing cross correlation between New Ulm Telecom and HUMANA INC, you can compare the effects of market volatilities on New Ulm 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 New Ulm with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Ulm and HUMANA.
Diversification Opportunities for New Ulm and HUMANA
Very good diversification
The 3 months correlation between New and HUMANA is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding New Ulm Telecom and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and New Ulm 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 New Ulm Telecom 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 New Ulm i.e., New Ulm and HUMANA go up and down completely randomly.
Pair Corralation between New Ulm and HUMANA
Given the investment horizon of 90 days New Ulm Telecom is expected to generate 3.63 times more return on investment than HUMANA. However, New Ulm is 3.63 times more volatile than HUMANA INC. It trades about -0.01 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.21 per unit of risk. If you would invest 875.00 in New Ulm Telecom on September 1, 2024 and sell it today you would lose (25.00) from holding New Ulm Telecom or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
New Ulm Telecom vs. HUMANA INC
Performance |
| Timeline |
| New Ulm Telecom |
| HUMANA INC |
New Ulm and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Ulm and HUMANA
The main advantage of trading using opposite New Ulm and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Ulm 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.| New Ulm vs. HUMANA INC | New Ulm vs. Aquagold International | New Ulm vs. Barloworld Ltd ADR | New Ulm vs. Thrivent High Yield |
| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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