Correlation Between Peoples Educational and HUMANA
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By analyzing existing cross correlation between Peoples Educational Holdings and HUMANA INC, you can compare the effects of market volatilities on Peoples Educational 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 Peoples Educational with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Educational and HUMANA.
Diversification Opportunities for Peoples Educational and HUMANA
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Peoples and HUMANA is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Educational Holdings and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Peoples Educational 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 Peoples Educational Holdings 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 Peoples Educational i.e., Peoples Educational and HUMANA go up and down completely randomly.
Pair Corralation between Peoples Educational and HUMANA
Given the investment horizon of 90 days Peoples Educational is expected to generate 2.55 times less return on investment than HUMANA. But when comparing it to its historical volatility, Peoples Educational Holdings is 1.76 times less risky than HUMANA. It trades about 0.05 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 8,030 in HUMANA INC on August 27, 2024 and sell it today you would earn a total of 5.00 from holding HUMANA INC or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.47% |
| Values | Daily Returns |
Peoples Educational Holdings vs. HUMANA INC
Performance |
| Timeline |
| Peoples Educational |
| HUMANA INC |
Peoples Educational and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Educational and HUMANA
The main advantage of trading using opposite Peoples Educational and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Educational 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.| Peoples Educational vs. Udemy Inc | Peoples Educational vs. NETGEAR | Peoples Educational vs. Western Digital | Peoples Educational vs. Relx PLC ADR |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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