Correlation Between Patria Latin and HUMANA
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By analyzing existing cross correlation between Patria Latin American and HUMANA INC, you can compare the effects of market volatilities on Patria Latin 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 Patria Latin with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patria Latin and HUMANA.
Diversification Opportunities for Patria Latin and HUMANA
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Patria and HUMANA is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Patria Latin American and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Patria Latin 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 Patria Latin American 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 Patria Latin i.e., Patria Latin and HUMANA go up and down completely randomly.
Pair Corralation between Patria Latin and HUMANA
If you would invest 1,163 in Patria Latin American on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Patria Latin American or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Patria Latin American vs. HUMANA INC
Performance |
| Timeline |
| Patria Latin American |
| HUMANA INC |
Patria Latin and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patria Latin and HUMANA
The main advantage of trading using opposite Patria Latin and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patria Latin 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.The idea behind Patria Latin American and HUMANA INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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