Correlation Between Oak Woods and HUMANA
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By analyzing existing cross correlation between Oak Woods Acquisition and HUMANA INC, you can compare the effects of market volatilities on Oak Woods 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 Oak Woods with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oak Woods and HUMANA.
Diversification Opportunities for Oak Woods and HUMANA
Very weak diversification
The 3 months correlation between Oak and HUMANA is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Oak Woods Acquisition and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Oak Woods 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 Oak Woods Acquisition 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 Oak Woods i.e., Oak Woods and HUMANA go up and down completely randomly.
Pair Corralation between Oak Woods and HUMANA
Assuming the 90 days horizon Oak Woods is expected to generate 6.27 times less return on investment than HUMANA. But when comparing it to its historical volatility, Oak Woods Acquisition is 5.39 times less risky than HUMANA. It trades about 0.06 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 7,891 in HUMANA INC on September 12, 2024 and sell it today you would lose (196.00) from holding HUMANA INC or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.01% |
| Values | Daily Returns |
Oak Woods Acquisition vs. HUMANA INC
Performance |
| Timeline |
| Oak Woods Acquisition |
| HUMANA INC |
Oak Woods and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oak Woods and HUMANA
The main advantage of trading using opposite Oak Woods and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oak Woods 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.| Oak Woods vs. HUMANA INC | Oak Woods vs. Barloworld Ltd ADR | Oak Woods vs. Morningstar Unconstrained Allocation | Oak Woods vs. Thrivent High Yield |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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